Chase offers many personal and business credit cards with great introductory bonuses, such as travel points and cash back. It’s no surprise that many people try to take advantage of these programs by applying for multiple accounts in a short period of time.
Chase has cracked down on this practice by limiting the number of its accounts a person can open within a specified time period. This practice has been called the 5/24 rule, but it’s not a published policy. Attempts to reach Chase for comment on this practice were not answered.
What Is the Chase 5/24 Rule?
The 5/24 rule seems to state that if you’ve opened more than five credit card accounts in the last 24 months, you will not be eligible for any more accounts from Chase. In addition, some consumers have reported that Chase canceled all of their accounts, no matter how old, after they reached this limit.
The purpose of the rule appears to be to keep Chase from spending so much on introductory offers, which can be quite expensive. Many consumers, on a quest to save as much as possible, apply for and then close many accounts in a short period of time. Banks need long-term customers to help them recoup the money lost on these freebies.
Which Credit Cards Are Impacted by the 5/24 Rule?
While reports differ, Chase travel and co-branded cards seem to be subject to this rule. Here is a list of some of the cards that are thought to be subject to the 5/24 rule (this list is subject to change):
- Chase Freedom
- Chase Freedom Unlimited
- Ink Business Cash Credit Card
- Ink Business Preferred Credit Card
- Chase Sapphire Preferred Card
- Chase Sapphire Reserve
- Chase Slate
- Southwest Rapid Rewards Plus Credit Card
- Southwest Rapid Rewards Premier Credit Card
- Southwest Rapid Rewards Premier Business Credit Card
- Southwest Rapid Rewards Priority Credit Card
- Starbucks Rewards Visa Card
- United Club Card
- United Club Business Card
- United Explorer Card
- United Explorer Business Card
- AARP Credit Card From Chase
- Disney Visa Card
Which Accounts Are Included in the 5/24 Count?
Most personal credit cards would count toward Chase’s rule. In addition, retail store credit cards that can be used at multiple stores (look for the Visa, Mastercard, or Discover logo on them) also count.
Many have wondered if cards that you’re an authorized user for count for this rule, and it appears that they do. Since these accounts are reported on your credit history, they will be taken into account when Chase reviews your application for a new card.
Most business cards aren’t reported on your personal credit report. Capital One and Discover cards are the exception; accounts with these companies will count against the 5/24 rule if you have received them within the last 24 months.
Other loan accounts, such as auto, school, or mortgage accounts, do not appear to count against you when it comes to the 5/24 rule.
Exceptions to the 5/24 Rule
There appear to be a few exceptions to the rule, but it is hard to tell as stories keep surfacing. In general, these offers seem to be exempt:
- “Selected for You” Offers: These can be found by logging into your Chase online account and expanding the menu in the top left corner to see “Your Offers.”
- In-Branch Offers: If you are visiting a branch and are told that you are approved for a credit card offer, this offer is not subject to the 5/24 rule. It has also been reported that turning in a paper application at a branch is exempt.
- BRM Paper Offers: Visit a branch with a Business Relationship Manager (BRM) and submit a paper application for a business credit card and you may be able to bypass the rule. These applications are handled by a different department that doesn’t apply the 5/24 rule.
Tips for Improving Your Approval Odds for a Chase Card
One of the things you can do to improve your approval odds is to not apply for too many credit cards in a short time frame. The introductory bonuses can be quite attractive, but having all of your accounts shut down is not worth the freebies. Keep track of how long it has been since you received your last cards and wait a couple of years before trying again.
You can also check your credit report and see how many accounts you opened recently. Chase will do this during the application process and dock you if you have opened more than five accounts in the last 24 months. Closing accounts does not help, as Chase counts all the accounts you’ve opened in that timeframe. You can check your report from all three credit bureaus (Equifax, Experian, and TransUnion) for free annually.
Make sure you have a clean credit history with a credit score that meets Chase’s requirements, too. If you don’t meet the enrollment requirements, work on improving your credit before applying.
Does being an authorized user on someone else’s account count toward Chase’s 5/24 rule?
Most card companies report authorized users as if they were the account holder. If the account shows on your credit report, then it will count against 5/24. Some business credit card accounts are not reported; you’ll need to pull your credit report to see which accounts are listed and which are not.
How does Chase know what accounts I open?
Every time you apply for a personal credit card, and some business cards, the card company will check your personal credit history with the three credit bureaus. They are looking at when each account was opened and your overall credit history to assess your creditworthiness.
How do you check your 5/24 standing?
You can check your standing by pulling your free credit report and looking at the dates when your accounts were opened. If you have more than five new accounts in the past two years, it would be a good idea to wait a while to apply for another account (at least with Chase). You can always apply with other card companies that do not have a limit on the number of new accounts you can have.
I’ve applied for 5 cards in the last 24 months but have not gone above the limit. Can I still get a card impacted by the 5/24 rule?
Based on the reports online, consumers who have applied for several cards in a short time span have been denied by Chase, whether or not they went over the 5/24 limit. Trying to game the system and get free rewards by applying for several cards is frowned upon by Chase, and it will deny applications that appear to be doing that.