What Is The Chase 5/24 Rule? An In-Depth Analysis

What Is The Chase 5/24 Rule? An In-Depth Analysis

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In 2014, Chase started rejecting credit card applications whenever someone had opened more than 5 credit cards in the past 24 months. Though there’s no official page on the Chase website about it, the Chase 5/24 rule is well known in the travel community.

The reason why you need to understand the 5/24 rule is because Chase Ultimate Rewards (UR) points are some of the most valuable points out there.

For anyone looking to learn how to travel for free, the 5/24 rule is the most important thing one has to know — it’s been misunderstood so many times, so we’re explaining it all in this post!

What Exactly Is The Chase 5/24 Rule?

Here’s the Rule:

If you have opened more than 5 credit cards with any banking or financial institution within the last 24 months, you won’t be allowed to open any of the Chase cards that are currently impacted by 5/24. Chase does not count some business cards by certain banks, and we’ll talk about that specific exception later on in the post.

Why did Chase create this rule?

Banks offer bonuses for credit card sign-ups in order to incentive people to sign up for credit cards and use them on a regular basis. They don’t want people just collecting bonuses. Chase is the first bank to institute such a rule like 5/24 in order to circumvent people who are opening cards just for bonuses.

Previously, clients of Chase Private Client  (CPC) were able to bypass the Chase 5/24 rule, but this is no longer the case. There are no exceptions, no matter what kind of relationship you have with Chase. This is why we recommend opening Chase cards under the 5/24 rule first because you won’t be able to get them after you have reached 5/24.

Chase has 2 versions of most cards, one personal and one business.

If you’re looking to optimize your Ultimate Rewards points, check out this post.

Which Chase Cards Are Under Chase 5/24?

**I have not included the links to the slate because it does not offer rewards points, and the Starbucks card is a terrible rewards card because any other card gives you a much higher value.

Which Chase Cards Are Not Under Chase 5/24?

Which Cards Do Not Count Towards Your Chase 5/24 Status?

Though the rule is understood to be 5 cards opened in 24 months, there are a few edge cases we’re going to talk about.

Authorized User (AU)

People often open authorized user accounts if they’re trying to help a family member or friend improve their credit, or they want to get bonus points for adding an authorized user onto an account.

Though authorized user accounts count towards 5/24 in Chase’s automated system, you can call the reconsideration line to get them to manually check your Chase 5/24 status without considering the authorized user account as part of your 5/24 status. You can also proactively ask to be removed as an AU before you apply so you don’t have to call. Make sure you get confirmation of the removal before you apply.

There have been data reports of credit analysts (the people who answer the reconsideration line phone calls) being able to approve people with one authorized user card. One.

Reconsideration Personal: 1-888-270-2127

Reconsideration Business: 1-800-453-9719

Retail Credit Cards

Though it has been generally reported that the Chase 5/24 rule only extends to retail credit cards that allow you to use your card outside of the retailer, new data reports are showing that any retail cards count towards Chase 5/24 status.

Also, retail cards usually aren’t very good deals in terms of rewards, so if you really want them, consider getting one after you’re over 5/24.

Some people report calling the reconsideration line for store cards that are only able to be used in a specific retailer (think Bloomingdale’s).

Business Card Information On Chase 5/24

Business cards that are reported to your credit report and count towards Chase 5/24 status:

  • Capital One
  • Discover
  • TD Bank

Business cards that are not reported to your credit report and don’t count towards Chase 5/24 status:

  • Amex
  • Bank of America
  • Chase
  • Citi
  • U.S. Bank
  • Wells Fargo

Yes, oddly enough Chase business cards don’t count towards 5/24 status.

Business cards that don’t have enough data points:

  • Barclaycard

Upgraded Or Downgraded Accounts

An upgraded or downgraded account shouldn’t apply towards 5/24 unless the issuer does a hard credit pull. I’ve definitely had customer service reps who had no clue what they were doing or had inaccurate information regarding hard/soft pulls, so consider downgrading or upgrading after you’re over 5/24 to be safe.

What About Other Kinds of Accounts?

Only credit cards are relevant here. Auto, personal, mortgage, and student loans do not count towards the rule. HELOCs, margin, and securities based lending does not count.

Exceptions To Getting Approved When You’re Over 5/24?

There have been reports of the below 2 examples getting past the Chase 5/24 rule.

  • Pre-approval – Warning: Do not ask if you are preapproved for any cards. Reports from people who have tried this show that those who ask about pre-approvals will be denied even if they are pre-approved. If the banker or teller mentions you are pre-approved without any prompting, that is ok. Seeing a credit card offer with a specific APR, like 17%, that means you are pre-approved. If you get a range for an APR, like 15%-17%, you are not pre-approved. This is different from being pre-qualified! Make sure you’re pre-approved. Since some bankers think pre-approved and pre-qualified are the same, get them to print out the page with that information and check the APR part. Being pre-approved means you might be able to get around the Chase 5/24 rule, but if you recently had issues with your credit score, you still might get disqualified due to that.
  • Chase Mailers – If a mailer has a specific invitation code (made up of random letters or numbers). Do not swap codes with other people. The mailers should be tied to your identity.

Things that no longer work:

  • Chase “Offers” – In your Chase account, there are cards that say “Selected for you” was reported to work, but there have been data points as of March this year that say it’s no longer a viable option.
  • Chase Banners – In the banners on your account, there might be an offer. These do not bypass 5/24.
  • Chase Private Client (CPC) used to allow you to bypass 5/24, but that isn’t the case anymore. There are many people who have asked their CPC banker and been unable to bypass 5/24. In late 2017, I walked in-branch to a CPC banker and was told the same.

However, if you have a high investment balance, you should consider moving part of that investment in-kind (in-kind does not trigger tax consequences) to Bank of America (BoA) to a self-directed account. You should consider a self-directed account so you don’t have to pay AUM fees and can just DIY your investment portfolio. That’s up to 2.6% cash back if you’re in the highest bracket ($100k). It’s 2.25% for accounts up to $25k and 1.875% in cashback for accounts up to $20k.  But again, consider applying to the Travel Rewards BoA card after you’re done with 5/24.

Other Chase Rules & Good Practices

Bonus Rules

You can only get one bonus every 2 years. You do not get bonuses if you product change your card.


Chase Sapphire Preferred and Reserve

While you used to be able to get both of these cards, you’re only able to get one of these cards now. They have similarities and we frequently are asked by readers which ones are the best for them, so we did an in-depth look at the difference between the Preferred and Reserve.

Wait 2 Months After You Roll Off 5/24

If you’ve just fallen off of the 5/24 status, try and wait a month or two before you apply for a Chase card. Sometimes it takes 2 months for an inquiry to fall off your credit report. If you’re unsure, check your Credit Karma report for free (you also get $50,000 in fraud protection for free) or call the Chase customer service line to ask.

How Often Can You Apply For A New Chase Card?

Though there is no written rule, it’s a good idea to space out your applications to every 3-4 months.

Not Everyone Can Have A Business

I believe if you’re not a permanent resident (or have reached a certain point in your application), you are not allowed to apply for business cards because your visa is either tied to your employer or you need to be sponsored by a decently large corporation. Don’t harm your (future) status over credit card rewards.

Otherwise, if you’re selling things on Etsy/Ebay/Poshmark, writing a blog, etc, you can open a business card. They generally have better rewards and earn rates on bonus categories.

Is It Possible To Apply For 2 Cards When You’re 4/25?

There are some data points that say you can apply for 2 cards on the same day when you’re 4/25 status. If you’re ok with being denied for the 2nd card, you can consider this.

Pay Off Your Balance On Time Each Month

If you’re trying to earn bonus miles and points, make sure you are paying off your entire balance each month so that you’re not generating interest. APR’s can be as high as 20%+ so make sure you’re paying off your balance on time!

Do Not Try To Game The Bank

You want to remain a long-term customer for a bank. It shouldn’t be too difficult for a bank to write a program to figure out the dollar value of each customer (I’m half sure they do this already). If you open a ton of cards but don’t use any of them, it’s not good for them. If you open a bunch of cards, get the bonus, but do really like them, that’s good, if you keep using them. Reading bank financials for the profitability of credit cards, it seems some get 50 percent of their revenue from credit card fees and the other 50 percent from interest. Pay off your balance each month so as to not generate interest.

You can still be a profitable customer for a bank by actually using the card. Credit card fees cost the retailer on average 3 percent, with higher-end credit cards costing even more. That’s one of the ways a bank can give points and miles rewards. If you’ve ever wondered why there is a cash discount at some gas stations, it’s due to credit card fees.

The bank wants to establish a profitable relationship with you by offering credit cards with great rewards. They hope you’ll come back when it’s time for an auto loan, mortgage, HELOC, etc, or become a CPC.

What If You’re Over Chase’s 5/24 Rule?

This is all great info for people who are under Chase’s 5/24 rule, but what about those people who are over 5/24? Don’t worry, we still have advice for you!

Stop Applying To Credit Cards Until You Get Under 5/24

If you really want the Chase cards included under 5/24, you might want to stop applying to credit cards until you get under 5/24 again. Chase Ultimate Rewards (UR) points are some of the most valuable points programs out there due to being able to transfer your points to 13 different hotels and airlines. All the UR earning cards are under 5/24 and you cannot product change a non-UR card into a UR card, so there’s really no way to earn UR points unless you get under 5/24. Either that or become an authorized user of someone else’s card.

Consider Other Rewards Programs

If you don’t want to wait, consider the Amex Membership Rewards (MR) and Citi ThankYou Point (TYP) rewards programs. Amex MR points have a lot of partners as well but don’t have as great travel portal redemptions. Citi TYP brings up the rear.

But I Want A UR Card Now, To Earn UR Points!

If you have held a Chase UR card for at least a year, you can product change it into another Chase branded card. You cannot product change across airlines, hotels, or Chase UR cards though. For example, if you have a Chase Southwest card, you cannot product change it into a card that earns UR points.

This Is All So Confusing!

I know this is all a ton of stuff to throw at you, so if you have any questions on what you should do or just are confused, feel free to send me a message here!

Here are some other posts on the topic that would be a good read. We’ve also got some more posts to come about Chase UR and Chase cards still!

Author: Olivia

Olivia worked in finance and wants you to learn the secrets of financial independence. She believes there are so many ways to monetize your life and make money doing the things you're already doing because so many companies offer free money.

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One of my favorite ways ways of monetizing my life is via credit card bonuses with cards that give you cashback or rewards. Check out our review of the Chase Sapphire cards, which give you at least $500 in cash or $625 in travel credit.

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