The Chase 5/24 rule is a guideline used by Chase Bank to determine the approval of credit card applications. The rule states that if an individual has opened five or more credit accounts in the past 24 months, Chase will typically deny their application for a new credit card. Business cards opened while do not count towards the 5/24 rule, but if you are the 5/24 limit, Chase will not approve you for a new business credit card.
Here are the key points to understand about the Chase 5/24 rule:
- The rule applies to all personal credit card products issued by Chase, including co-branded and business credit cards.
- The rule is based on the number of new credit accounts an individual has opened in the past 24 months. This includes all types of credit, such as credit cards, personal loans, and car loans.
- Authorized user accounts and business credit cards do not count towards the 5/24 rule.
- The rule is not published by Chase, it is based on reports from customers and credit card industry professionals.
- Some exceptions to the rule may be made for customers who are pre-approved for a credit card or have a strong relationship with Chase.
How to Navigate the 5/24 rule?
The best to navigate Chase’s 5/24 rule is to open business credit cards first, followed by personal cards offering a big bonus. I suggests going after cards earning Chase Ultimate Rewards points before option for an airline or hotel co-branded credit card. Chase Points provide plenty of flexibility and can also be transferred to other programs.
Here’s an Example of the Cards I would open in order:
- Chase Business Ink Cash
- Chase Business Ink Unlimited
- Chase Ink Preferred
- Chase Sapphire (you can downgrade this card to a no fee card after earning the bonus)
- Chase World of Hyatt Credit Card
- Chase United Mileage Plus Credit Card
Using these 6 cards, you can amass a over 300,000 Chase points and a combination of Hyatt points and United Miles perfect for a dream vacation for 2!
Exceptions to the Rule
There are a few exceptions to the Chase 5/24 rule that may make an individual eligible for a credit card despite having opened five or more credit accounts in the past 24 months. These exceptions include:
- Pre-approved offers: If an individual receives a pre-approved offer for a Chase credit card, they may be able to bypass the 5/24 rule and be approved for the card.
- Private client status: Customers who have a high level of assets or deposit with Chase and classified as Private client may be exempt from the 5/24 rule.
- Business cards: Business credit cards issued by Chase do not count towards the 5/24 rule. However, the rule applies to personal credit card products.
- In branch or over the phone applications: Some customers have reported that they were able to bypass the 5/24 rule by applying for a credit card in person at a Chase branch or over the phone.
- Reconsideration line: If an individual is denied for a Chase credit card due to the 5/24 rule, they can try calling the reconsideration line to see if they can provide additional information that would make them eligible for the card.
It’s worth noting that these exceptions are not guaranteed and the rules may change at any time, so it’s always best to check with Chase before applying for a credit card. Additionally, these exceptions are not officially published by chase, it’s based on reports from customers and credit card industry professionals.