What is the Chase 5/24 rule?
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What does 5/24 mean?
How many credit cards have you been approved for in the past two years? If your answer is 5, you may have hit your limit with Chase's unpublished 5/24 rule. Simply put, if you have opened 5 credit cards over the past 24 months, it is very unlikely you will be approved for any additional Chase cards thanks to this unwritten Chase policy. So despite having an excellent credit score, if you have opened 5 credit cards in the past 24 months, and recently got denied for your 6th Chase card, the Chase 5/24 rule is likely the cause. Keep in mind it does not matter if you close an account, in an attempt to free up a 5/24 slot because only opening accounts count. Since there is no definitive documentation on the dreaded 5/24 rule, most of its data is crowd sourced via online forums like Reddit and credit card blogs. Chase seemed to implement this 5/24 rule in the summer of 2015 in an apparent attempt to stop credit card churners from soaking up too many sign up bonuses too fast and then closing out their credit lines after spending points. Before you apply for your next credit card, we want to make sure you understand this important Chase 5/24 policy so you can plan better for your future of credit card rewards!
What adds to your 5/24 score?
How do you know if your recent credit card approval will affect your 5/24 score? Unfortunately, ALL personal credit card accounts opened with ANY bank, to include charge cards like the American Express Platinum and Gold Card, will count toward your 5/24 score. For example if you were to apply for your very first credit card and got approved for the Chase Freedom Card, you would be 1/24. If you then apply for a American Express Gold Card and get approved, you would be at 2/24. Remember that even if you close that Chase Freedom Card, your score will still be 2/24 because Chase's 5/24 only counts open accounts. Do store brand credit cards count toward your 5/24 score? Another sad yes, specific store brand credit cards which can only be used at their respective stores will fill a slot in your score.
Do business cards add to your 5/24 score?
Most business cards will not affect your 5/24 because you are using an EIN instead of your personal SSID. Although, Capital One, Discover, and TD Bank business cards are an exception and DO count toward filling your 5/24 score.
Do authorized users add to your 5/24 score?
It's not unlikely for travel hackers and credit card aficionados to share card benefits with family, spouses, and even friends or business partners. For example, I am an authorized user on my partner’s American Express Gold Card. It makes more sense to be an authorized user on this card rather than pay an additional $250 annual fee for the same reward structure used mostly for 4x on groceries. Since this American Express Gold Card is reported on my credit report, it fills a 5/24 slot. However, if you apply for a Chase credit card and get denied, you can call Chase and explain that you are just an authorized user. You can attempt to explain to Chase that you are not responsible for the payments on this account and see if they will reconsider your application.
How to bypass the 5/24 rule?
Just to be clear, we do not recommend trying to push this Chase policy. In the long run it is not worth having Chase close down your other accounts or even worse, blacklisting you. Longevity of your credit history is more important than churning. You're going to NEED your credit history and cards your entire life especially if you want to continue to travel hack, you don't NEED that sign up bonus right now. That being said, here are a few ways that people have bypassed the 5/24 rule:
Apply for two Chase cards on the same day when you are 4/24 and get approved for both.
Apply through a preapproved mail offer. People have gotten lucky with receiving targeted invitations to cards labeled with unique invitation codes.
Random success when applying. Some people have reported that they have been 5/24 but still approved for unknown reasons.
Applying for a Chase card in a physical Chase branch. Chase branches can check which cards you are preapproved for and submit an application that may bypass the 5/24 rule.
Being a Chase Private Client appears to sporadically circumvent 5/24 depending on the customer, and also provide bigger sign up bonuses at times.
Simply call the reconsideration line if you get denied. If you have really good credit and a solid standing with Chase, and have been a loyal long term customer, you may get lucky.
I am at 5/24, now what?
If you have filled all 5 credit card approval slots in 24 months, you do not have much of a choice for Chase cards. You will need to wait until the first card you applied for clears off the 24 month period before you will likely be approved for another. The good news is though, if you have already gotten all the Chase credit cards you want you could always apply for cards from other banks like American Express or Citibank. Chase's 5/24 rule will not affect your approvals to credit cards from other banks. Also, if you think you are at the very end of your 24th month and still get denied, wait till the end of your billing cycle, so basically the FULL 24th month has to be over to clear the new 5/24 slot. If you need to calculate your 5/24 score, you can sign up for a free app called Credit Karma which will show the dates you have gotten your past cards.
Final Point
Now that you understand what the Chase 5/24 rule is, where do you stand? The 5/24 rule seems to be here to stay, so whether you are new to credit cards and travel hacking or a veteran, you will have to be strategic with your credit card approvals to maximize your rewards. If you are new, Points Passport highly recommends getting the Chase credit cards you want first so you won't have to worry about 5/24 as much in the future. If you have any questions about the 5/24 rule or any other credit card or travel hacking topics feel free to contact us on Instagram, Facebook, Email us at pointspassport@gmail.com, or comment down below!