Are you wondering what this 5/24 rule is? If so, you’re not alone, there’s a lot of chatter going on about this “set of rules” a bank follows. While some of you may be familiar with the 5/24 rule, most people are not, so this guide is specifically about what is called the “5/24 Rule.”
When it comes to the most popular reward credit cards, there’s no question about it, travel reward credit cards are the most popular. Ultimately, travel cards are also the most abused credit cards as everyone wants to max out their rewards.
If you’ve been following travel credit cards for some time or have applied for travel rewards credit cards over the last few years, you’ve likely came across what the internet has labeled the “Chase 5/24 Rule.”
While there is no official bank documents that outline this policy, it has been widely referred to by points and miles collectors, something that is really important to know.
Getting down to brass tacks, the 5/24 rule is this: if you have opened up 5 or more new credit cards in the past 24 months (the issuing bank does not matter), you will not be approved for a new credit card with Chase Bank.
It doesn’t matter if you love travel reward credit cards and the signup bonuses they offer, or if you’re just getting started in the realm of travel reward cards, here’s some key points everyone should know about Chase’s 5/24 Rule.
The rule affects applications for Chase personal and small business credit cards (including the Chase Sapphire Preferred and Ink Business Preferred).
The number of credit cards opened in the last 24 months is a rolling count. If, for instance, your 5th newest card was opened 23 months ago, you’ll be eligible again in just one month.
Small business credit cards do not count towards your 5 cards.
If you’re a Chase Private Client (someone with over $250,000 in assets with Chase Bank), you may be exempt from this rule.
If you are an authorized user of another card (i.e. your spouse’s card), it will count towards your 5/24 card tally.
Even if you’re under 5 card applications, you could still be declined for a card application for another reason.
How The Chase 5/24 Rule May Affect Your Card Eligibility
If you are new to travel credit cards and/or haven’t opened any new card accounts in the last two years, and you want to get a Chase Ultimate Rewards earning card like the Chase Sapphire Preferred or the Ink Business Preferred, we recommend that you prioritize these. After that, consider Chase’s other co-branded cards like the Southwest or United Explorer cards.
If you do plan to apply for more than one or two cards in a two year period, we recommend keeping track of the application dates of all your credit cards. If you have opened credit card accounts in the past 24 months and didn’t keep a record, you can request any one of your annual credit reports for free to see when you opened them.
It’s also important to note that each individual card issuing bank has it’s own rules similar to 5/24 which limit how often you can get a signup bonus. We’ll cover the rules for Citibank and American Express in the next weeks.
In the meantime, if you don’t have an Ultimate Rewards earning card yet, and if you aren’t over 5/24, you’ll want to check out our most recommended card.
Are All Chase Cards Subject to 5/24?
It’s important to note that only specific credit cards issued by Chase are subject to 5/24 for approval. The following cards have always been reported to be 5/24 cards:
- Chase Freedom
- Chase Freedom Unlimited
- Ink Business Cash Credit Card
- Ink Business Preferred Credit Card
- Chase Sapphire Preferred Card
- Chase Sapphire Reserve
- Chase Slate
- Southwest Rapid Rewards Plus Credit Card
- Southwest Rapid Rewards Premier Credit Card
- Southwest Rapid Rewards Premier Business Credit Card
- Southwest Rapid Rewards Priority Credit Card
- Starbucks Rewards Visa Card
- United Club Card
- United Club Business Card
- United Explorer Card
- United Explorer Business Card
While it hasn’t been affirmed just yet, it’s also highly likely that the Ink Business Unlimited Credit Card is subject to 5/24.
We also know this, Chase expanded the 5/24 rule in the middle of November 2018 to include all of their co-branded cards too. This information is still relatively new as Chase never comments on their 5/24 rule, but don’t be surprised if these credit cards are also included.
- AARP Credit Card From Chase
- Aer Lingus Visa Signature Credit Card
- Amazon Prime Rewards Visa Signature Card
- British Airways Visa Signature Card
- Disney Premier Visa Card
- Disney Visa Card
- The World Of Hyatt Credit Card
- Iberia Visa Signature Credit Card
- IHG Rewards Club Premier Credit Card
- IHG Rewards Club Traveler Credit Card
- Marriott Bonvoy Boundless Credit Card
Exceptions To The 5/24 Rule
If you want to beat the 5/24 rule, it won’t be easy, but some Chase applicants have had success being approved for targeted credit card offers despite having too many recent accounts. While this is certainly happening on a person-by-person basis, it is not a guaranteed path around the rule. Furthermore, we don’t recommend using tricks and hacks to bypass the rules.
For example, you can apply for a Chase small business credit card. While these cards do require you to meet the 5/24 rule when you apply, they don’t count against your 5/24 standing. That means that you can still technically have more than five open accounts in the last 24 months and still be under 5/24 rule. Plus, qualifying for a small business credit card is easier than most people would think and yes, sole proprietorships are also eligible.
Another way to circumvent the 5/24 rule is to opt for a product change rather than a new credit card application. If you don’t meet 5/24 but already have a Chase credit card that no longer suits your needs, you can upgrade or downgrade a card with Chase.
If you do go that route, just keep in mind that you won’t be eligible for the new card’s introductory offer by choosing this option. Even so, this could be another way around the 5/24 rule.
