Laila Keith
The Chase 5/24 rule limits the number of credit cards you can be approved for within a two-year period. To be approved for a Chase credit card, you must have fewer than five new credit card accounts on your report within the last 24 months. This rule applies to all credit card accounts, not just Chase cards. However, it is important to note that mortgages, auto loans, and student loans do not count toward your 5/24 score. Business credit cards that do not appear on personal credit reports are also typically excluded from the 5/24 calculation.
| Characteristics | Values |
|---|---|
| What is the 5/24 rule? | The Chase 5/24 rule limits the number of credit cards you can be approved for within a two-year period and still qualify for additional Chase credit cards. |
| What does it restrict? | Opening a new credit card with Chase if you have opened five or more new cards in the past 24 months. |
| What does it include? | All new accounts on your report, not just Chase accounts. Credit cards, charge cards, business credit cards, and certain retail cards. |
| What does it exclude? | Mortgages, auto loans, student loans, credit cards that you were not approved for, and certain small-business cards. |
| How to check your 5/24 status? | Pull credit reports and count the cards that show up on the reports from all three credit bureaus (Transunion, Equifax, and Experian). |
What You'll Learn
Mortgages don't count towards 5/24
The Chase 5/24 rule is an unofficial guideline that states that you will not be approved for a new Chase card if you have opened five or more credit card accounts from any bank within the past 24 months. This rule only applies to getting approved for cards issued by Chase, but your 5/24 count includes credit cards from all banks.
Mortgages, auto loans, student loans, and credit cards for which you were not approved do not contribute to your 5/24 score. This is because the 5/24 rule only applies to credit cards. In addition, business cards with TD Bank, Capital One, and Discover are included in the 5/24 count.
Chase counts all new accounts on your report, not just Chase accounts. So, if you have applied for and been approved for three American Express cards and three Bank of America cards, you’d likely be denied for a Chase card due to being over 5/24. It is important to note that this rule is based on new accounts being reported, so applications that are denied won’t count towards your total.
To avoid the Chase 5/24 rule, wait to apply for a new Chase card until some of your recently opened accounts fall outside the 24-month window. Prioritize applying for the Chase cards that offer the most value to you.
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Chase 5/24 rule applies to credit cards
Chase's 5/24 rule is an unofficial guideline that states that the bank will not approve new credit card applications if the applicant has opened five or more credit card accounts from any bank within the past 24 months. This rule applies to most Chase credit cards, including travel cards, co-branded cards, and business cards.
The 5/24 rule is based on the number of new credit card accounts reported on an individual's credit report. Chase counts all new accounts on the report, not just Chase accounts. This includes personal credit cards from any bank, retail credit cards, and authorized user accounts. Closed accounts are also counted, as Chase looks at the open dates of credit cards. However, denied credit card applications and some business cards that don't report to credit bureaus, such as Chase business cards, are typically not included in the 5/24 calculation.
To determine your 5/24 status, you can download a free credit report from one of the three major credit bureaus (TransUnion, Equifax, or Experian) and count all the credit card accounts approved in the last 24 months. It is important to note that Chase conducts a credit check, often referred to as a hard inquiry, before approving or denying credit card applications. This check provides access to account open dates and helps assess eligibility based on the 5/24 rule.
While the 5/24 rule applies to credit cards, it does not include loans such as mortgages, auto loans, student loans, or personal loans. These types of loans are not considered part of the 5/24 calculation and do not impact an individual's eligibility for Chase credit cards under this rule.
To summarize, the Chase 5/24 rule specifically targets credit card applications and approvals, limiting individuals who have opened too many credit card accounts in the past 24 months. This rule is designed to prevent consumers from accumulating excessive credit and potential debt or abusing rewards programs. By following this rule, Chase ensures responsible lending practices and maintains the integrity of its rewards credit card offerings.
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Business cards may not count
The 5/24 rule is an unofficial Chase guideline that states that you will not be approved for a new Chase card if you have opened five or more credit card accounts from any bank within the past 24 months. This rule is tied to your personal credit, which means that if a card shows up on your credit report, it will count towards your 5/24 count. This includes any personal credit cards that you open in your own name.
Business cards, on the other hand, can be reported differently depending on the individual bank. Most banks do not report business cards on your credit report, which means they will not count against you when it comes to Chase applications. This is because they are hidden from Chase's systems since Chase only checks your personal credit report. However, you will likely get a hard pull on your personal credit report when applying for a business card.
It is important to note that not all business cards are exempt from the 5/24 rule. Business cards with TD Bank, Capital One, and Discover are included in the 5/24 calculation. Additionally, Chase business credit cards do not count towards your overall 5/24 count, but they are still restricted by the 5/24 rule.
In summary, while most business cards do not count towards the 5/24 rule, it is important to check with the individual bank to see how they report business cards. Additionally, some business cards from specific issuers, such as TD Bank, Capital One, and Discover, are included in the 5/24 calculation.
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5/24 rule is unofficial
The 5/24 rule is an unofficial Chase guideline that states that you will not be approved for a new Chase card if you have opened five or more credit card accounts from any bank within the past 24 months. This includes credit cards from all banks, not just Chase cards. Chase business credit cards do not count toward the 5/24 rule, as they are associated with a business rather than an individual. Additionally, certain business cards from other banks do not show up on personal credit reports and therefore will not count toward the 5/24 score.
The 5/24 rule only applies to getting approved for cards issued by Chase. It limits the number of credit cards you can be approved for within a two-year period and still qualify for additional Chase credit cards. This means that to be approved for a Chase credit card, you must have fewer than five approvals for credit cards within the last 24 months. When applying for a Chase credit card, the card you're applying for is counted as one of your allowed five approvals. As a result, you can only have been approved for four credit cards from any issuer in the preceding 24 months.
It's important to note that the 5/24 rule does not include loans, such as personal loans, mortgages, auto loans, or student loans. These types of loans are typically not counted as part of the 5/24 calculation. However, all personal credit cards, including charge cards and retail store cards, are factored into the 5/24 count.
The 5/24 rule is not published anywhere by Chase. As a result, much of what is understood about the rule comes from crowdsourced information. Chase representatives have communicated that applicants with too many credit cards opened in the last 24 months will be denied approval for a new Chase card. This rule is in place to prevent consumers from having too much credit and to discourage abuse of rewards programs.
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5/24 rule affects eligibility for Chase cards
Chase's 5/24 rule states that you will not be approved for a new Chase card if you have opened five or more credit card accounts from any bank within the past 24 months. This rule is based on the number of new credit card accounts you have opened in the past 24 months, not the number of accounts currently open. This means that closed accounts are still counted towards your 5/24 score.
The 5/24 rule applies to most Chase credit cards, including the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve®. It also applies to Chase co-branded business cards with travel partners like United. However, it does not apply to Chase business cards, which do not count towards your 5/24 score. This is because business cards are associated with a business rather than an individual.
Loans, such as personal loans, mortgages, auto loans, and student loans, are typically not counted as part of the 5/24 calculation. This is because they are not credit card accounts. However, business credit cards that show up on your personal credit report will count towards your 5/24 score.
To check your eligibility for a Chase card under the 5/24 rule, you can download a copy of your free credit report from one of the three major credit bureaus (TransUnion, Equifax, or Experian) and count all the credit card accounts you've been approved for in the last 24 months, including closed accounts.
It's important to note that the 5/24 rule is an unofficial guideline and is not officially stated in Chase's terms of service documents. However, it is a well-documented restriction that can affect your ability to obtain some of the most popular Chase rewards cards.
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Frequently asked questions
The Chase 5/24 rule means you won't be approved for Chase cards if you've opened five or more new cards in the past 24 months.
No, mortgages, auto loans, and student loans are not counted as part of the 5/24 calculation.
Credit cards for which you applied but were ultimately denied, and small-business cards from the majority of card issuers, are also not counted toward your 5/24 score.
