If you’re new to earning miles and points with credit cards, it’s imperative that you understand the Chase 5/24 rule before moving forward. That’s not meant to scare you, it’s just vital to understand it so that you can make the best decisions when applying for a new card.
While Chase won’t come out and say it directly, after mountains and mountains of data points in the last several years, it’s safe to say that this rule exists — and has evolved.
So, if you’re a beginner, pay attention. We’re going to show you everything you need to know to get started.
The Chase 5/24 Rule
If we were to provide a dictionary-like definition of the Chase 5/24 rule, it would go something like this:
“You will not be approved for a Chase card if you have been approved for 5 or more personal cards from any bank (and some business cards) in the last 24 months.”
Simple enough, but we can’t understate the importance of knowing this. In fact, it will dictate how you should decide which cards to get as you build out your wallet.
Now, to be clear, this rule only applies to cards issued by Chase. Other banks have their own sets of rules but this is the big one with Chase.
Cards That Add To Your 5/24 Count
If a card shows on your personal credit report, it’s going to be included in your 5/24 count as Chase will see it when you apply for a new card. Do not forget this.
It’s almost easier to just list what doesn’t add to your count of 5/24 but let’s take a look at the what will so it’s very clear.
All Personal Credit Cards And Charge Cards
If you open a personal credit card or a charge card — think Platinum, Gold, and Green with American Express, you can be confident that it will show on your personal report. So, every single personal card you get will count whether it’s from Amex, Bank of America, Capital One, Chase, Citi, Discover, TD Bank, Wells Fargo, a credit union and so on.
Authorized User Cards
This one can be a bit frustrating. If a significant other or a friend adds you as an authorized user on their credit card, this account will show on your credit report. If you have opened 3 cards of your own in the last 24 months and are an authorized user on 2 other cards, this could cause you some headaches.
Some have had success applying, getting denied initially, and then calling reconsideration to explain the situation. However, this does not always work.
Another option is to have the main account holder, call the bank and ask them to remove you has an authorized user. Once the bank has done so, you can reach out to all three credit bureaus — Equifax, Experian, and TransUnion — to request that the accounts be removed from your credit reports.
This could take some time so it’s best to do this ahead of time so you don’t mess with your plans.
Some Business Cards
Whether a business card will add to your 5/24 count simply comes down to whether it shows on your personal credit report. Most banks don’t report your business card activity for your personal report, but we know three that do:
- Capital One
- TD Bank
It’s important to keep this in mind so you aren’t surprised when you want to open a new Chase card.
How many times have you shopped at a store and received a credit card pitch at checkout? Probably too many to count, right? Well, if you open one of these cards and they’re on American Express, MasterCard, or Visa network, you can bet they’ll show on your credit report.
Additionally, some stores issue cards that can only be used at that particular store. Unfortunately, there have been reports of these cards showing on credit reports even though these cards aren’t on a national payment network. This hasn’t been consistent, but it’s not really worth the risk.
How To Check Your Credit Reports For Free
You might have noticed that we’re specifically interested in the cards you’ve opened, not inquiries. While all banks factor in your recent inquiries, this is different than the 5/24 rule. To see how many credit/charge card accounts you have on your report we suggest you use two free tools.
First, Experian has its own free tool that lets you check your credit report to see which accounts you’ve opened. To find this info, select the “Accounts” tab and sort by “Opened On” — hopefully, you can count back two years. You can pay to see your credit score but you’re better off just using Credit Scorecard to see your Experian FICO score for free.
Second, Credit Karma is an easy way to see the accounts showing on both your Equifax and TransUnion credit reports. Keep in mind the credit scores Credit Karma shows you from these credit bureaus are a VantageScore, not a FICO score — the most commonly used in credit card applications.
What Cards Are Subject To The 5/24 Rule?
When the Chase 5/24 rule was first rolled out, only some cards were impacted by it. Unfortunately, in the fall of 2018, Chase expanded the rule to cover all of its cards except possibly the Chase Marriott Bonvoy Business
Here’s a complete list of the cards that you can now only get while under 5/24:
|Chase Sapphire Preferred Card||Southwest Rapid Rewards Premier Credit Card|
|Chase Sapphire Reserve||Southwest Rapid Rewards Premier Business Credit Card|
|Chase Freedom||Southwest Rapid Rewards Priority Credit Card|
|Chase Freedom Unlimited||Aer Lingus Visa Signature Credit Card|
|Ink Business Preferred Credit Card||Iberia Visa Signature Credit Card|
|Ink Business Cash Credit Card||United MileagePlus Club Card|
|Ink Business Unlimited Credit Card||United MileagePlus Club Business Card|
|The World of Hyatt Credit Card||IHG Rewards Club Traveler Credit Card|
|United Explorer Card||Amazon Prime Rewards Visa Signature Card|
|United MileagePlus Explorer Business Card||AARP Credit Card From Chase|
|Marriott Bonvoy Boundless Card||Chase Slate|
|British Airways Visa Signature Card||Starbucks Rewards Visa Card|
|IHG Rewards Club Premier Credit Card||Disney Premier Visa Card|
|Southwest Rapid Rewards Plus Credit Card||Disney Visa Card|
Pretty disappointing to see them all listed like that, but that’s the current state of play.
Are There Offers That Bypass This Rule?
Previously, you could bypass the 5/24 rule if you had Chase Private Client status but those days are long gone.
Recently, some were targeted on their Chase accounts with a “Selected For You” offer for one of the Chase Sapphire cards. This seems to have allowed some people to get one of the cards even though they were beyond 5/24 — other Sapphire rules still applied, as we’ll discuss below.
When you look at the bigger picture, though, you’re better off not hoping and praying for some random offer to show in your account. Instead, it’s better to have a strategy from the start.
A Strategy For Beginners
If you’ve ever wondered why we suggest beginners start with Chase before moving to other banks, the 5/24 rule is THE reason. Well, Chase also offers some cards that earn Ultimate Rewards points that can be very valuable so that’s a good reason too.
If you’re just getting started, the Chase Sapphire Preferred is a stress-free way to go as the $95 annual fee is waived the first year and comes with a 50,000-point welcome bonus when you spend $4,000 in the first three months. It also earns 2X on all travel and dining purchases.
If you’re a more serious traveler (or fare deal fanatic), the Chase Sapphire Reserve might be more your style even with the $450 annual fee — offset with the $300 annual travel credit. This card also comes with a Priority Pass Select membership for airport lounge access and earns 3X on all travel and dining purchases.
If you are eligible for a small business card, you’ll want to take a look at the Chase Ink Preferred as it comes with an 80,000-point welcome bonus after meeting the $5,000 minimum spend in three months and a bunch of 3X bonus categories.
Once you’ve gotten started with these, you can decide what cards will be most beneficial for you: airline (United or Southwest), hotel (Hyatt, Marriott, IHG), or other cards that can help you earn Ultimate Rewards points.
Other Chase Application And Bonus Rules
In the last year or so, Chase has closed some people’s accounts out of the blue — the vast majority were reopened — because of several factors including the opening a lot of new accounts in a short timeframe. With this in mind, it’s important not to rush into things and try to get five cards today.
Beyond the Chase 5/24 rule, here are few other rules to keep in mind.
2 Applications Per 30 Days
Chase will limit you to opening 2 of its personal cards per 30 days. If you apply for a third, you’ll be rejected automatically. Keep in mind that it’s a rolling 30 days.
For most Chase cards, you can receive the welcome bonus once per 24 months. The 24-month clock starts the date you receive the welcome bonus — not when you applied or received the card.
Things work a little differently for the Sapphire cards, though. You will not be eligible for the welcome bonus that comes with either the Chase Sapphire Preferred or Chase Sapphire Reserve if you currently hold either card or you received the welcome bonus for either card within the last 48 months.
Finally, there is also a separate restriction for the Southwest personal cards. While you still have to wait 24 months between welcome bonuses, you can’t have received the welcome bonus on any of the personal versions of these co-branded cards:
- Southwest Rapid Rewards Plus
- Southwest Rapid Rewards Premier
- Southwest Rapid Rewards Priority Credit Card
The Chase Southwest Rapid Rewards Premier Business Credit Card does not face the same restriction as the personal versions nor does it impact your eligibility for the bonus for the personal versions.
Business Card Rules
If you venture into business cards, just know that Chase is one of the tougher banks with which to get a business card. In fact, Chase will rarely let you get more than two business cards and will only allow you to get one within a 30-day timeframe.
The Chase 5/24 rule certainly complicates matters a bit but, with a little thought, you’ll be on your way before you know it. Just make earning Chase Ultimate Rewards points your priority if you’re just starting out and you’ll be fine.
If you’ve already hit 5/24, all I can say is enjoy the benefits of the Chase cards you have because the time for getting new ones has passed.
For those trying to figure out how to approach this, don’t hesitate to leave a comment. We’re happy to help!