The Chase 5/24 Rule Explained

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Whether finding the credit card with the lowest APR or the best travel rewards, you want to ensure you get the best bang for your buck. When it comes to opening a new credit card, what are some of the rules and limitations and how will they affect you?

What Is the Chase 5/24 Rule? 

The definition of the Chase 5/24 is that if you have applied for, and been approved for, five or more credit cards in the past 24 months, you will be automatically denied if you apply for any Chase credit card products.

While Chase has not confirmed that such a rule exists, anecdotal evidence suggests that Chase might have put the policy in place to prevent you from opening a bunch of credit cards just to get the sign-up bonus and closing the accounts without paying the annual fees.

Chase Cards Affected by 5/24 

Most Chase travel cards or rewards credit cards are thought to be subject to the 5/24 rule, even those issued by Chase but branded by another company. Examples of cards that reportedly fall under the 5/24 policy include, but are not limited to, the following:

• Aer Lingus Visa Signature Card
• Amazon Prime Rewards Visa Signature Card
• British Airways Visa Signature Card
• Chase Freedom Flex
• Chase Freedom Unlimited
• Chase Sapphire Preferred Card
• Chase Sapphire Reserve
• Disney Visa Card
• Iberia Visa Signature Card
• IHG Rewards Traveler Credit Card
• Ink Business Cash Credit Card
• Ink Business Preferred Credit Card
• Marriott Bonvoy Bold Credit Card
• Marriott Bonvoy Boundless Credit Card
• Southwest Rapid Rewards Plus Credit Card
• Starbucks Rewards Visa Card
• United Business Card
• United Club Card
• World of Hyatt Credit Card

How Do You Check Your Chase 5/24 Status?

Though there is no calculator to check what your 5/24 status is, you should be able to figure out where you stand.

If you don’t remember how many credit cards you applied for in the last two years, you can always check your credit report. All three major credit bureaus offer free weekly online credit reports through AnnualCreditReport.com, so you can see which accounts have been open and closed in the last 24 months and determine if it is five or more. These reports are included in the offer:

• Equifax
• TransUnion
• Experian

Credit Card Accounts That Add To Your 5/24 Status

The 5/24 rule only affects whether or not you’ll be accepted for a Chase card product. However, your personal credit report will be included in the assessment of whether you’ll be approved for a Chase card. Any cards you have opened or closed in the last 24 months will be subject to the 5/24 rule, whether or not they are Chase cards.

Here are examples of other accounts that add to your 5/24 status:

• Personal credit cards
• If you are an authorized user on a credit card
• Business cards listed on personal credit cards
• Business cards opened with most Discover, TD Bank or Capital One accounts
• Visa, Mastercard or American Express, Member FDIC, retail or store cards

Is There a Way To Bypass the Chase 5/24 Rule?

There used to be several ways around the 5/24 rule, according to The Points Guy, but the only one that might still work is to apply for offers Chase lists as being “Just for you” when you’re logged into your account on the website. Strategies that worked in the past include:

• Applying as a Chase Private Client
• Applying from the Chase web page for preapproved offers
• Applying for “Selected offers for you” displayed when you log into your account on the Chase website
• Applying through banners on the Chase website
• Applying for the fifth and sixth cards at the same time to trick the system into processing both applications as the fifth

Are There Downsides To Having More Than Five Chase Credit Cards?

Getting approved for as many Chase cards as possible can help you accumulate bonus points or miles very quickly, but it can also work against you. As Chase notes on in the educational section of its website, each application results in a hard pull on your credit report, which might noticeably, albeit temporarily, lower your score.

In addition, each new account you open reduces the average age of your credit history. That can be detrimental, as the length of your credit history makes up 15% of your credit score, according to myFICO.

Even a modest reduction in your credit score can make you ineligible for the best rates on auto and mortgage loans. For example, on a $20,000 72-month auto loan, the difference in payment amounts with a 719 credit score and a 720 is $22 per month, according to Carvana’s loan calculator. That works out to $1,584 over the life of the loan — far more than the value of those extra rewards.

Final Take

Chase acknowledges that “some credit card issuers won’t accept applications from someone who has applied for multiple cards at once or within a certain amount of time.” It doesn’t say whether it is one of those issuers. But rather than try to game the system by bypassing Chase policies, apply for cards gradually, as you need more credit or are ready to upgrade to better cards. You won’t rack up as many sign-on bonuses that way, but you will protect your credit score — over the long term, a much more valuable reward.

Daria Uhlig contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

The information related to Chase credit cards was collected by GOBankingRates and has not been reviewed or provided by the issuer of these cards. Product details may vary. Please see the issuer’s website for current information. GOBankingRates does not receive commission for this product.

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