The Chase 5/24 “Rule”
Leaning Lighthouse in Puerto Morelos, MX, 2018
If you’ve been looking into credit cards to maximize your rewards, you’ve likely come across the term “Chase 5/24 Rule.” This unofficial rule is crucial to understand if you're considering applying for Chase credit cards, as it can significantly impact your ability to get approved for their most coveted products. In this post, we’ll break down what the Chase 5/24 rule is, how it works, and what you need to know to navigate it effectively in your credit card strategy.
What is the Chase 5/24 Rule?
The Chase 5/24 rule is a policy that restricts applicants from being approved for most Chase credit cards if they have opened 5 or more new credit card accounts in the past 24 months. In simple terms, if you’ve opened 5 or more credit cards with any bank within the last two years, you’ll likely be denied for a new Chase credit card—no matter how strong your credit score is or how appealing the card offer is.
This rule applies to a wide range of Chase credit cards, including popular ones like the Chase Sapphire Preferred and Chase Freedom Flex. While some Chase cards—like the Chase Business cards and certain co-branded cards—may not strictly follow the 5/24 rule, most of their best offers are affected by this restriction.
Why Does Chase Have the 5/24 Rule?
Chase’s strategy is to manage risk and ensure that their credit card customers are responsible borrowers. Chase wants to avoid approving applicants who may be opening multiple credit cards quickly, as this could indicate financial instability or the potential for default. In addition, it prevents customers from churning credit cards to maximize bonuses without having the intent to maintain long-term relationships with Chase.
For Chase, the goal is to reward loyal customers who are likely to hold and use their cards responsibly for an extended period. The 5/24 rule helps ensure that those approved for their premium cards are committed to the program and won’t cancel or close cards shortly after receiving a sign-up bonus.
How Does the Chase 5/24 Rule Work?
The 5 New Accounts in 24 Months: The rule is straightforward—if you’ve opened 5 or more credit cards in the past 24 months, you won’t be approved for a Chase card. Chase looks at all credit cards that you’ve opened during this period, not just cards with them. This includes personal and authorized user cards.
Authorized User Cards: Even if you’re only an authorized user on someone else's account, Chase still counts it as one of your “new accounts.” So, if you’ve been added as an authorized user to multiple cards, this can impact your 5/24 status. To remedy this, you can call the bank you are an authorized user with and get them to take you off as the authorized user, and it should fall off in a couple of months.
What Counts as a “New” Account?: A new account is defined as any credit card account that was opened within the past 24 months. This doesn’t mean that the account has to be recently active—it’s just about when it was opened.
How Chase Tracks Your Applications: Chase gets access to your credit report whenever you apply for one of their cards, so they can easily see how many credit card accounts you’ve opened in the past 24 months. This is how they enforce the 5/24 rule.
How to Check Your 5/24 Status
If you’re unsure of how many new credit cards you’ve opened in the past 24 months, you can check your credit report. You’re entitled to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through AnnualCreditReport.com. You can also use services like Credit Karma or Credit Sesame to track your credit history, though they may not always show the full detail of every account opened.
What Are Your Options if You’ve Hit the 5/24 Limit?
If you’ve already opened five or more credit cards in the last 24 months and are looking to apply for a Chase card, there are a few strategies you can consider:
Wait It Out: If you're approaching the 5/24 limit, you can simply wait until older accounts drop off your 24-month window. For example, if you opened a card 25 months ago, it will no longer count against your 5/24 status. This strategy can be time-consuming but ensures you’re eligible for Chase’s most desirable cards. You could rack up points on another card in the meantime if you really want to still be earning the valuable Ultimate Rewards points.
Open Business Cards: While most personal Chase cards towards your 5/24, business cards don’t. However, you must be below 5/24 in order to be approved. For example, if you’re at 4/24, concentrate on opening business cards until you have one or two other cards fall off in order to keep a good relationship with Chase. Once one card falls off, then you can apply for that high welcome offer on that personal card you’ve been eyeing. Don’t think you qualify for a business card? Check out this post.
Consider Non-Chase Cards: If you’re currently in the 5/24 range and can’t apply for Chase cards, consider focusing on other credit cards that offer similar benefits, such as cards from American Express, Citi, or Capital One. Many of these issuers also have lucrative rewards programs, although their benefits and application rules differ from Chase’s.
How to Plan Your Credit Card Applications with the 5/24 Rule in Mind
If you want to strategically open Chase cards without hitting the 5/24 rule too early, you can follow these steps:
Prioritize Chase Cards Early On: If you’re planning on applying for Chase cards, make them your first priority to maximize sign-up bonuses and rewards without hitting the 5/24 rule. This is why the Sapphire Preferred is the perfect beginner’s card and one I always suggest getting first in your travel journey.
Minimize Other Credit Card Applications: Try to limit the number of new cards you apply for from other issuers if you know you’re going to want to apply for Chase cards soon.
Manage Your 5/24 Status Early On: Keeping an eye on which cards you’ve opened with the Travel Freely app will help you track how many new accounts you’ve opened and when they will no longer count toward your 5/24 status.
Navigating the Chase 5/24 Rule
While the Chase 5/24 rule may feel like a roadblock when applying for Chase credit cards, it’s a straightforward guideline to follow once you understand how it works. The best approach is to prioritize Chase cards early in your credit card journey, keep an eye on your credit report, and plan your applications carefully to avoid hitting the 5/24 limit. With some patience and strategic planning, you can successfully navigate the rule and unlock the valuable rewards and benefits that come with Chase cards.
If you need assistance in finding the next card that’s right for you, check out this free credit card consultation!
