Chase Now Using 5/24 Rule For Credit Limit Increases

Chase looks at the number of credit cards that you have recently opened before approving you for a new card. With the Chase 5/24 rule you will not be approved for most Chase cards if you have opened 5 or more revolving accounts (including credit cards, lines of credit, etc.) in the past 24 months. That number includes cards from all issuers, not just Chase cards.

Now, Doctor of Credit reports that Chase is using the 5/24 rule even when cardholders request a credit limit increase on one of the credit cards they already have. When a reader applied for a credit limit increase with Chase, he was denied due “too many credit cards opened in the last two years associated with you”. This is the same reason that Chase gives to new credit card applicants when they have opened 5 or more revolving accounts in the past 24 months.

The person that requested the credit limit increase called in after the denial, and was specifically told the request was denied due to more than 5 cards in the last 24 months.

Guru’s Wrap-up

Most credit card issuers have been lowering credit limits for new cards and even current cardholders during the pandemic. American already were carrying more debt even before the pandemic broke out, and the it got worse in the last few months. So it is not surprising that Chase is denying credit limit requests. But this is the first time that we see the Chase 5/24 rule being used for these denials. Chase have also lowered some credit limits by as much as 50% for people who have not been using much of their credit limit.