All the major banks have their own rules for approving or denying new credit card applications. Chase has the most famous and most talked about rule of them all. While Chase doesn’t publish their official rule, there are enough data points available to determine what it is. This also happens to be one of the more restrictive rules because Chase looks at applications across all banks and not just their own. This is why I recommend starting your points and miles journey with Chase credit cards and then branching out after that.
The Chase 5/24 Rule
What is the Chase 5/24 rule?
Chase will not approve you for a new credit card if you’ve opened five or more new credit cards, from any bank, in the last 24 months. All personal credit cards from all banks count towards your total so you can’t get around this by applying for non-Chase cards.
Chase introduced this rule several years ago to prevent card churning and stop people from getting a bunch of their credit cards just for the sign-up bonuses. While there can always be exceptions, you should expect this rule to apply.
What accounts contribute to your 5/24 status?
Chase uses your personal credit report to count your 5/24 status. Authorized user cards from another person’s personal card will count as they’re reported on your credit report. However, you can call the Chase reconsideration line and ask for these accounts to not be considered.
What counts towards 5/24:
- All personal credit cards opened with any bank in the past 24 months (even if they’re now closed)
- Business cards opened with Capital One, Discover and TD Bank in the past 24 months
- Authorized user cards from another person’s personal card opened in the past 24 months
What’s not included:
- Cards for which you applied but were ultimately denied
- Business cards from the majority of card issuers, with the known exceptions listed above
- Auto loans, student loans and mortgages
Business cards that do not get reported to the personal credit bureaus are not included in this count. Even Chase business cards are not counted, but they are subject to 5/24. So if you’re over the 5/24 limit, you probably won’t get approved for a Chase business card.
How to know if you’re over the limit
There isn’t an official tracking tool but looking at your credit report is one option. Credit Karma is a good 3rd party website where you can request to see your credit report for free. I keep a spreadsheet of all credit cards I’ve applied for, so it’s easy for me to go back and see where I’m at. Another option is Travel Freely, another 3rd party website which tracks all of your credit card applications and has a visual counter of your Chase 5/24 status right on the home page. It also tracks other things like sign-up bonuses and when annual fees are due.
FAQ
Can I apply for a new credit card the day after I drop below 5/24?
You should wait until at least the first of the next month following. For example, if I was approved for my fifth most recent credit card on August 17, 2020, I would drop below the 5/24 rule on August 17, 2022. However, I’d want to wait until at least September 1, 2022 to apply for a new card.
I’m at or over the 5/24 limit. Can I apply for a credit card from another bank?
Yes! Your 5/24 status does not impact approvals for credit cards issued by banks other than Chase.
Bottom Line
The existence of the Chase 5/24 rule requires you to be strategic about your credit card application strategy. As I mentioned before, newbies should look to prioritize getting Chase cards first. With that said, remember that it’s not a sprint and you don’t need to fill all five Chase slots right away. So it take slow and be smart about which cards you apply for and when you do it.
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