Fighting Chase 5/24: I Lost! (And Lessons Learned)

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chase 524 reconsideration failure

Chase 5/24 Reconsideration Failure

The other day I wrote about my challenge to Chase’s 5/24 rule. After initially applying for a targeted United MileagePlus Explorer 75K + $50 offer, I was denied for “too many new accounts”. Naturally I tried to get my application reconsidered the normal ways, but was unsuccessful, so I turned to the new super reconsideration department. (AKA Resolutions Department.)

Related: 5 Apps, 4 Banks & 1 Painful Denial: My Latest Credit Card Application Results

I had requested that my application go to the “Resolutions Department” via Secure Message. I learned about this department from a reader who recently had an application denied and then approved by this department. After requesting the escalation, I was called by someone in this department within a few days. The news wasn’t good though.

On the phone call I was informed that there is no reconsideration for the “too many new accounts” denial. As in, they won’t even look at it. This certainly is in line with data points others have shared so I wasn’t completely surprised. One tiny bit of good news did emerge though. I was told that the Resolutions Department can manually reconsider any application not denied for “too many new accounts”. Good to know!

Lessons Learned

While I covered the basics of this story yesterday in my recap of all of my recent apps, I thought this should be in a standalone post, because there are a few lessons I learned that I feel can be useful to others.

Based on this experience, these are my takeaways:

  • Being targeted for an offer isn’t a sure fire way to avoid the “too many new accounts” denial. I was targeted both in my United account and via a physical mailer.
  • Some people are still able to avoid 5/24. For example, Frequent Miler was approved for this very same offer while I was denied. He is a Chase Private Client which may be the reason. In other words, this rule isn’t applied evenly across the board which is not a surprise.
  • The Resolutions Department seems to be staffed with senior analysts who are empowered to make decisions. I wouldn’t hesitate to escalate a denial to them as long as it is not for “too many new accounts”.
  • I need to re-think a Chase strategy going forward, because I don’t appear to be one of the lucky people immune from 5/24. For that reason, I plan to foster a stronger personal relationship with my local Chase banker so I can ask him to check from time to time for pre-approved offers. Not only will he get a commission and thus hopefully fight for my apps, but in-branch pre-approved offers have been reported in some cases to circumvent 5/24.

Conclusion

As I said in my original post on this topic, I didn’t expect to get an approval from the Resolutions Department, although I am glad that I was able to find out that they can manually reconsider an application as long as it isn’t denied for “too many new accounts”. I suspect that information will be useful for some of you and for others who like me who are denied for being churners, tough news. Thankfully there are other banks and other offers out there and the rules are always changing.


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21 COMMENTS

  1. I was targeted for the IHG 80+5k offer via a mailer. I applied and was denied due to 5/24. I called and escalated to someone in the resolutions department. They told me they disagreed with the decision, verified a couple pieces of info, and in a few minutes I had an approval. They even had me name my own credit limit. I’m not a Chase private client. Just a regular joe that applies for too many cards.

  2. Unfortunately, my pre-qualified Chase Ink offer did not follow this pattern you noted – “in-branch pre-approved offers have been reported in some cases to circumvent 5/24” – as I was denied for the “too many new accounts” also… And now I am also in the process of reconsidering my Chase strategy going forward.

  3. Same situation here. In late-April, I got targeted-mail CSP card denied due to too many account opened in last 24 months. I strongly believe 5/24 rule has been strictly applied to everyone.

  4. My wife recently applied for a southwest plus card but did not get automatic approval. When she received a letter from Chase it stated too many new accounts. She has had only two new accounts in the last 24 months so called to ask why she was denied. The reason was that I have 6-8 new cards and that she was an authorized user on some of the accounts and these were included in the too many new accounts rejections. however she was told that she wouldn’t be rejected for all chase cards. That cards like AARP and some others would be fine. Apparently it has to do with the company in this case Southwest.
    So two data points
    1. Be careful of signing up as an authorized user if there isnt a good bonus that is better than possible sign up
    bonus
    2. The vagaries of the 5/24 rule include which co branded card you are signing up for

  5. Shawn,
    How many new accounts do you have in the last year? How many Chase cards? I’m right at 5/24, with two Chase cards 6 months ago. Thinking of going for the CSP.

  6. Just a data point regarding to the Chase Private Client: Earlier this year, I was preapproved for the CSP. I am also a CPC. The banker applied for me in the branch. It was rejected due to “too many new accounts.” The Chase banker called re-consideration line but no good news. I also called and got the same decision. Yes, I do not know what rules work anymore … Thanks.

  7. If you aren’t eligible they shouldn’t target you, period. They have all the data they need to exclude you from these promotions but they chose not to use it, likely for cost reasons. Classic bait and switch (the ploy of offering a person something desirable to gain favor then thwarting expectations with something less desirable). I hope a class action comes out of this.

  8. I applied for IHG 9 days ago with 6 open accounts in 24 months, but 2 were business cards (with Chase). Received the review/pending at application. I applied for two reasons I understood IHG was safe and my personal cards only numbered 4. I have not heard a word, should I sit tight or call, and if so, what is the number.

  9. I was right at 5 new cards in 24 months, and was targeted for the 75,000 mile United offer in both physical mail and email. My new Amex Starwood business card might not have been counted in the 5/24 mix because I got instant approval from Chase (I have an Ink Bold, Freedom and Sapphire Preferred, but no Chase bank accounts). I do have an 840 credit score; don’t know if that swayed things in my favor. I’m counting my lucky stars and am not going to be applying for anything new for a good long time.

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