The Chase 5/24 Rule: Everything You Need to Know

Chase 5/24 Rule

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Back in 2015, Chase bank implemented an unpublished restriction that applies to most of the credit cards they offer. The rule is affectionately known around the world of points & miles as the Chase 5/24 Rule.

 

What is the Chase 5/24 Rule? 

The Chase 5/24 rule is a hard and fast restriction which was rolled out with the intention of limiting card applicants from opening credit cards for the sole purpose of earning the bonus rewards they offer. The rule is not officially published through any of Chase’s mediums, and if you ask about it in a Chase branch, employees have likely not heard of it. This was my experience when attempting to open a Chase card at a branch in New York City.

The following restrictions apply to the Chase 5/24 Rule:

  • If you have opened 5 or more credit cards in the past 24 months from any bank (not just Chase cards), you will not be approved for Chase credit cards that are subjected to the 5/24 rule. Regardless of your credit score or history with Chase bank.
  • The rule does not count credit inquiries, but rather card products you have applied and been approved for.

 

What this means is that no matter the financial institution your cards are through, if you have opened more than 5 new accounts in the past 24 months, you will likely not be approved for Chase credit cards that are subject to the 5/24 rule.

 

What Chase Credit Cards are Affected by the 5/24 Rule? 

The following list of credit card products are all affected by the Chase 5/24 rule. This means that if you have opened 5 or more new credit card accounts in the past 24 months, you will not be approved for any of these cards.

Because of the Chase 5/24 Rule, we always recommend that the list of cards above should be among the first that you apply for.

 

Do Authorized User Accounts count towards the Chase 5/24 Rule? 

Authorized user accounts will typically appear on your credit report. Because of this, they will be counted towards your 5/24 status. There are many data points out there that suggest calling into the Chase reconsideration line may result in some representatives not counting authorized user accounts towards your 5/24 status.

This ultimately allows you to be approved for cards impacted by the Chase 5/24 Rule, assuming your authorized user accounts put you over the 5/24 rule. Chase’s reconsideration phone lines are as follows:

  • Reconsideration (Personal): 888-270-2127
  • Reconsideration (Business): 800-453-9719

 

Other Important Data Points

Retail Store Credit Cards: If you have specific retail store credit cards, these will only count towards your 5/24 status if the card can be used outside of the specific store. This means if the card has a payment network listed on it such as Visa, American Express, Discover or Mastercard, it will be counted. If not, the card will not count against your 5/24 status.

Other Lines of Credit: Mortgages, auto loans, etc. should not count towards your 5/24 status as they are not a bank card. The Chase 5/24 rule will not apply to these lines of credit.

How are 24 Months calculated?: This is calculated on a card membership basis, not a calendar year. For example, if you are above 5/24 and fall below it on May 15th, you would need to wait until June first before you applied for a card that was subjected to the Chase 5/24 Rule.

Thrifty Tip: Use the Travel Freely 5/24 Counter to track your status as it relates to the 5/24 rule. This is the best resource I have found as it automates the tracking and saves a ton of time.

 

 

Bottom Line

If you understand the restrictions of the Chase 5/24 rule, you should be able to navigate it without much issue. This is the most restrictive credit card application rule out there and it is the reason we always recommend that Chase cards should be among the very first you apply for.

 

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Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer.

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