In the world of credit cards, there is no rule more famous than Chase’s unofficial 5/24 Rule, which states that an individual will not be approved for a Chase credit card if they have opened five or more credit cards across all banks in the past 24 months. This count includes all new credit card accounts, not just those with Chase, and affects both Chase’s personal and business credit cards.
What’s Included In Your 5/24 Count?
All personal cards and some business cards opened in the last 24 months count towards your 5/24 count. Most issuers do not report business cards to credit bureaus, but some do, like Capital One, Discover, and TD Bank. Charge cards do count towards 5/24, but debit cards do not. Cards where you are an authorized user may also count toward your 5/24 count.
Included Cards
Personal Credit Cards
Personal Charge Cards
Business cards from TD Bank & Discover
Capital One Spark Cash Select, Spark Miles, and Spark Miles Select
Included cards where you are an authorized user
Excluded Cards
Any debit cards
All Other Business Cards
Strategies for Navigating the 5/24 Rule
Prioritize Chase Cards
If you're planning to apply for multiple credit cards, consider applying for Chase cards first.
Space Out Applications
Spread out your credit card applications to stay below the 5/24 limit.
Consider Business Cards
Most business credit cards do not count towards the 5/24 limit, but this can vary. Individuals can open business cards as sole proprietors.
Reconsider Authorized User Status
Being an authorized user on someone else's card might count towards your 5/24 limit, so reconsider this status if you're approaching the threshold.
Wait At Least One Month After Going Below 5/24
Instead of opening a Chase card right after becoming 5/24 eligible, wait at least a month. This will improve your odds of success, although some applicants have reported success applying just days after becoming eligible.
Exceptions and Loopholes
While the 5/24 Rule is quite stringent, there are reported exceptions and loopholes. Some applicants have reported success through pre-approved offers or by visiting a Chase branch. However, these instances are not guaranteed and can vary greatly.
If you are denied, you can call Chase to see if they will reconsider
Personal Reconsideration
888-270-2127
Business Reconsideration
800-453-9719
The Chase 5/24 Rule plays a crucial role in the credit card application strategy, especially for those seeking rewards and bonuses. By understanding and strategically navigating this rule, applicants can make more informed decisions and maximize their chances of approval for Chase credit cards. As with any credit-related decision, it's important to consider the impact on your overall financial health and credit score.