Chase 5/24 Rule Explained: Everything You need to Know

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Chase 5/24 Rule Guide

Each major credit card issuer has it’s own unique set of rules with respect to approving new applications for their cards. Chase has one of the most restrictive policies when it comes to approving applications for certain new cards. Chase’s restrictive policy has been coined the “5/24 Rule”. In our Facebook group and the comments on our site, we get a ton of questions about 5/24. We thought it would be helpful to create a guide that details everything you need to know about the rule.

What Exactly is the 5/24 Rule

Chase 5/24 Rule basic explanation:

You will not be approved for certain Chase cards if you have opened 5 or more revolving accounts (including credit cards, lines of credit, etc.) in the past 24 months.

Related: Chase Ultimate Rewards Points Guide: Earning, Redeeming and Sapphire, Freedom and Ink Brands

Chase 5/24 Rule – What Counts & What Doesn’t

While the Chase 5/24 rule is quite restrictive and includes all revolving accounts that show on your credit report, thankfully there are some accounts that don’t count towards your 5/24 limit.

RelatedWith Their New Rules is Bank of America the Toughest Approval in the Biz Now?

Chase 5/24 Guide

Most Business Credit Cards Do Not Count

Thankfully most banks do not report small business credit cards on personal credit reports. Almost all of the major banks (Chase, Citi, Amex, Bank of America) do not report their business card products on your personal report. With that said, some banks such as Capital One, Discover and (possibly) Barclays do report their small business cards on your credit report.  This varies by bank and is a reason to do your research before applying.

  • There are several other smaller issuers with business card options, you should look for current data points as to whether their cards will be reported on your personal credit report.

Authorized User Accounts Do Count

Unfortunately, in most cases authorized user accounts count towards your allowance of 5 cards. There are ways to negate the impact of your authorized user accounts.

  • In most cases, you can get authorized user accounts removed from your report after you’ve closed them or have been removed as an authorized user.
  • There is also some evidence to suggest that Chase will reconsider your application if you call in and explain that the accounts are not yours- meaning you are not the primary account holder.
  • Chase Reconsideration Contact Info
    • Reconsideration (Personal): 1-888-270-2127
    • Reconsideration (Business): 1-800-453-9719

Chase Cards And 5/24

While Chase’s 5/24 rule is a tough one to get around, not all Chase products are subject to the rule. Here is a list of the cards subject to 5/24 and cards that are exempt from the rule.

(Note: This info comes from various applicant data points and has not been confirmed by Chase.)

Chase 5/24 Rule Guide

Chase Cards Subject to Chase 5/24 Rule (Click on highlighted cards for our reviews):

Chase 5/24 Rule Guide

Chase Cards exempt from Chase 5/24 Rule:

How to Bypass Chase 5/24 with Pre-Approved Offers

While nothing is guaranteed, you may be able to bypass 5/24 with pre-approved (in-branch) or pre-selected (online) offers.

Pre-Approved Offers

If you stop in to a Chase branch, they can check if you are pre-approved for any offers. It often helps if you have a banking relationship with Chase.

Note: even with a pre-approved offer you aren’t guaranteed an approval.

Pre-Selected Offers

The other way you may be able to get around the Chase 5/24 rule is if you login to your online account and your account shows you are “pre-selected” under the “offers” section. In this case you may be approved despite being over 5/24. Pre-selected should not be confused with general pre-qualifications.

Other Ways to Bypass 5/24?

There are potentially a few other ways to get around the 5/24 rule, though these methods should be used with caution since there is conflicting information as to whether they actually work.

  • Receive a targeted mail offer, there have been reports of people bypassing 5/24 when they received a targeted offer in the mail with an offer code.
  • Have a business resource manager submit a paper application on your behalf. More details can be found here.

Chase 5/24 Rule Guide

How To Check Your 5/24 Status

In order to check your 5/24 status, you’ll need to access your personal credit report to count how many revolving accounts have been opened in the last 24 months. You can get your personal credit report for free from many places including annualcreditreport.com, Credit Karma and Credit Sesame.

Counting 5/24 Tips

  • Make sure to count any new accounts opened in the past 30 days in your 5/24 tally even if they are not yet showing on your credit report.
  • Keep in mind if you closed a card that was opened in the last 24 months, it still counts towards 5/24 since it is based on the opening date.
  • Check more than one report because sometimes they have conflicting account information.
  • Denials do not count towards your status.

Strategies

Chase Cards First

If you’re under 5/24, you should consider getting the Chase cards you’re interested in before anything else if it’s not on the list of exceptions.

  • Plan out which Chase cards you would like to get and apply for those first, you never know when great sign-up offers will come around and you may not be able to take advantage of them if you’re close to 5/24.

You should also check out Mark’s Clean Slate Series where he maps out his “would be” application strategy from the beginning knowing everything he knows now. There is a major emphasis on 5/24 and it will give you concrete examples of how everything works.

Business Cards Only

If you’re not too far away from being under 5/24, you could apply only for business cards in the meantime. While some Chase Business cards are subject to 5/24, they do not count towards your 5/24 status.

  • As long as a card is not reported on your personal credit report, it should not count against you. (Remember things change all the time, I always look for a few current data points.)
  • This means you can still earn sign-up bonuses while waiting to dip under 5/24.
  • Many people don’t realize that their activities qualify as small businesses. For example, someone who collects and sells baseball cards or stamps could apply for a small business card.
    • Something else to consider is that often banks don’t require the business to be up and running yet, you could use your new card to buy things for a business you’re setting up.
    • Note: You want to be honest when answering the questions on the application. Don’t apply for a business card if definitely do not or will not qualify as a business.

Maximize Spending on Current Cards

Avoid signing up for new credit accounts and take advantage of the perks of the cards you already have. Often when we’re working on minimum spend requirements we ignore which cards offer the best rewards for specific categories because we indiscriminatley put all of our spend towards meeting the bonus. This strategy allows you to maximize rewards and take advantage of any special spending offers you are selected for while allowing you enough time in between new cards to get under the 5/24 threshold. Barclay’s, Citi and Chase send out targeted spending offers fairly regularly.

Conclusion

There are several Chase cards that are worth having and even holding on to indefinitely.  The Chase Freedom is a popular no-fee card that’s one of my personal favorites. People also love their Chase Sapphire Preferred and Chase Sapphire Reserve Cards and pay the annual fee year after year just to make sure they have a premium Ultimate Rewards Option. You must have a paid version of the Ultimate Reward’s Cards in order to take advantage of transfer partners and increased point value when booking travel. Please check out our guide to combining your Ultimate Rewards Points in case the rumors are true that Chase may put an end to transfers between accounts.

Due to the 5/24 restrictions, Chase cards are not really churnable. Unless you don’t normally apply for multiple cards each year, you shouldn’t close your applicable accounts with Chase because you may not be able to get another.


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11 COMMENTS

    • Sorry for the lack of reply, I somehow missed this one! Yes they do, but I’m going to be raising hell over at Amex when the time comes, I’ll make sure to let you know the results

  1. Thanks for the column; I started with Ink Business Preferred and then got Ink Business Cash; had would they count against the personal cards- Sapphire Reserved, Freedom, etc… Had IHG also in the past year, but you indicate that’s ok with the rule. Thanks

  2. I was able to get approved for the chase Marriott personal card without calling in even though I was already at 5/24?

    April/2016- CSP
    August/2016- Chase Amazon prime
    October/2016- CSR
    December/2016- authorized user of CSP
    December/2017- Chase Ink preferred
    January/2018- Chase Marriott personal

    • Chase Ink Preferred Does not count against your 5/24 status since it is a business card and not reported on your credit report. It is however subject to 5/24 because they check your personal credit to evaluate your application

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