What is the Chase 5/24 Rule and How it Works?
Many deals here on the site, especially when it comes to travel, involve applying for new credit cards. Credit card signup bonuses are a great way to earn miles and points, but issuers also have rules in place to limit how many cards and bonuses you can get. Chase is one of those issuers that limits new applicants. They have a well known rule, which you might know as Chase 5/24. But exactly what is the Chase 5/24 rule and how it works? In this article you can find all the information you need to know when applying for Chase cards.
What is the Chase 5/24 Rule
The Chase 5/24 rule is not an official rule in the credit card’s terms of agreement. But it is well known and often referred to even by Chase representatives. It was only briefly included in the application page for the Chase Sapphire Reserve back in 2016. It stated, “You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months.” It was soon removed after that, but it has remained a rule since 5-6 years ago. Originally this rule was for Chase branded cards only, but in 2016 it was added to cobrand cards as well.
Chase 5/24 means that you can’t be approved for most Chase cards if you have opened five or more credit cards (from any card issuer) within the past 24 months. So for example, if over the last 24 months you opened two Amex cards, two Capital One cards and a Citi card, then you will likely be denied for a new Chase credit card. That’s until you go under the 5/24 count, which means that you have to wait for the first of those five accounts to be over 24 months old.
What Counts Towards the 5 Limit
The rule states that you must not have opened five or more credit cards within the last 24 months, but what exactly counts as a new card?
When you apply for a credit card, the issuing bank will run your credit report to decide if they can approve you. The bank will pull your credit report from one of the three main credit bureaus: Equifax, Experian or TransUnion. That credit report includes a lot of financial information about you, including all the credit cards that you have opened and closed, including the dates. So if a card shows on your report, then Chase counts it.
All new personal credit cards will count towards the 5/24 count. Some business cards will show up as well, while some others might not (if they only report to the business credit report). If you are added as an authorized user on someone else’s account, most likely that will show on your report and count towards the 5 limit. If you apply for a card and are denied, that will not count as a new card, even though the credit pull will be visible.
Business Cards from Other Issuers
Business credit cards from other issuers might, or might not show up on your personal credit report. Here’s a short list of issuers, and how their business cards affect your Chase 5/24 count. As you can see, most business credit cards will not hurt your standing with Chase.
|American Express||Reports negative information|
|Bank of America||No|
|Capital One||Yes (Except for Capital One Spark Cash for Business)|
|U.S. Bank||Reports delinquent accounts|
What Cards Are Affected by Chase 5/24?
There is no official list. But over the years it has become clear that most or all credit cards fall under this rule. This includes most Chase credit cards that you will come across.
Chase Branded Cards:
- Chase Freedom
- Chase Freedom Flex (read review)
- Chase Freedom Unlimited
- Chase Sapphire Preferred
- Chase Sapphire Reserve (read review)
- Chase Slate
- Ink Business Cash
- Ink Business Preferred
- Ink Business Unlimited
Chase Cobrand Cards:
- AARP Card
- Aer Lingus Visa Signature Card
- Amazon Prime Rewards Visa Signature Card
- British Airways Visa Signature Card
- Disney Premier Visa Card
- Disney Visa Card
- Iberia Visa Signature Card
- IHG Rewards Club Premier Card
- IHG Rewards Club Traveler Card
- Marriott Bonvoy Bold Card (read review)
- Marriott Bonvoy Boundless Card
- Marriott Premier Card
- Southwest Rapid Rewards Plus
- Southwest Rapid Rewards Premier
- Southwest Rapid Rewards Priority (read review)
- Southwest Rapid Rewards Premier Business
- Starbucks Rewards Visa Card
- World of Hyatt Card (read review)
- United Club Business Card
- United Club Card
- United Explorer Card
- United Quest Card (read review)
That really includes all Chase cards, and if any card is missing from the list, it probably still falls under the Chase 5/24 rule. The only exclusion might be temporary when a card is first launched. It has happened rarely in the past.
What’s the Deal with Chase Business Cards
When it comes to Chase Business credit cards, it gets a bit confusing. As you can see in the list above, you will not be approved for new Chase business cards such as the Ink Business Unlimited or United Club Business for example. But, while Chase business cards are subjected to the 5/24 rule, they won’t show up as an additional card towards that limit. Chase business cards don’t show up on your personal credit report.
So let me give you an example. Let’s say you’re at 4/24. If you apply for the Ink Business Preferred, you will be approved if your credit score is good enough, because you are under 5/24. But you will still be at 4/24. If you then apply and are approved for the Southwest Rapid Rewards Premier Business card, again you will still be at 4/24. But if you apply for the Sapphire Reserve next, then you will be at 5/25, because that card will show on your personal report. And now you can’t apply for any new Chase cards, until you go back to 4/24. A bit confusing, but hopefully that clears it up somewhat.
How to Check Your 5/24 Count
If you know you have opened multiple new credit cards recently, as it might be the case for most readers, then you need to be sure that you are eligible for a Chase card. You should know where you stand as far as the 5/24 rule goes. To calculate your 5/24 count, you can simply review your credit report. You can get a free credit report from Annual Credit Report. Count the number of new accounts in the past 24 months.
This also includes if someone added you as an authorized user on their account. And any accounts that were opened within the past two years but also closed within that time should still be counted. On the other hand, mortgages and auto loans do not add to the Chase 5/24 count. Student loans on the other hand, could count.
But keep in mind that this is not an exact science. Don’t apply the minute you think you are under 5/24 again. If you were approved for a card on June 15, 2019, that card for sure will not be part of your 5/24 count by July 1, 2021. That’s the safe play. But, you can often be approved within a few days of a card falling off the 5/24 count. I would suggest doing this only if you have a certain time constraint, such as a huge bonus going away on a specific date for example.
Can You Get Around Chase 5/24 Rule?
Chase 5/24 is a strict rule for all new Chase credit cards. But there are some ways to open a new Chase card, even if you are at, or over 5/24.
The most popular offers that bypass Chase 5/24 are pre-approved offers that you find online, in your Chase accounts. These offers usually show up as “Selected for you” or “Just for you”. They will have a green star for personal credit card offers and a black star for business credit card offers.
You can find these offers after you log into your Chase account. At the top of the page, click ‘Open an account’ and then click on ‘Just for you’. You should also see many offers to refer your friends. But you should be looking for signup bonuses for your favorite cards, that come with a fixed APR. You can also check under Credit Cards. Some people can see offers that say “You’re already approved”.
The other option is to apply at a Chase branch, if you can do so through a business relationship manager (BRM). They can submit a paper application for business credit cards, and that will usually bypass the 5/24 rule. The reason why this works, is because these applications don’t go through the regular approval channels.
In the past you get around 5/24 by being a Chase Private Client, but that no longer works.
There’s also one last trick worth mentioning, if one of the five cards within the past two years is an authorized user account. The easiest way to remove that account is to ask the primary cardholder to remove you from the card. You can then contact each of the three credit bureaus and ask them to remove that card from your report. You can also call the Chase reconsideration line after applying and explain the situation. They can approve you if one of the 5 cards is an authorized user account, but this is up to the Chase rep.
Chase 5/24 FAQs
- Q: Do store cards count?
- A: If it is a regular credit card that you can use anywhere, and not only at that specific store, then it counts towards 5/24
- Q: Can I close one of the cards to go under 5/24?
- A: No, that will not change anything. It still counts.
- Q: What can I do if I go under 5/24 soon after applying and being denied for a Chase card?
- A: You can call the Chase reconsideration line and they will be able to approve you.
- Q: What if I applied for a card but wasn’t approved? Does that count?
- A: Only approvals count. Applying and being denied does not.
- Q: Can I get around Chase 5/24 if I receive a mailed targeted offer with a unique code?
- A: Most likely not. This used to work in the past, but not anymore. The most reliable way is to see if an offer has a fixed APR in the terms.
- Q: If I’m at 4/24, can I apply for two cards at once?
- A: Yes, this can work. But there’s no guarantee.