Posted by William Charles on May 24, 2018
Credit Cards

Published on May 24th, 2018 | by William Charles

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Chase 5/24 Rule Explained In Detail – Everything You Need To Know

Happy 5/24 day everybody! 🙁

The Basics

Chase has an unpublished rule that applies to most of the credit cards they offer. The rule is an apparent attempt to limit people that sign up for credit cards for the rewards. It’s as follows:

  • When it was officially added it stated: You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months.
  • Our previous interpretation: If you have five or more new accounts (credit/charge cards) on your credit report within the past two years you will not be approved

This rule was originally implemented on Chase branded cards (e.g Freedom & Sapphire Preferred) in June of 2015 and then extended to most co-branded cards (e.g United/Marriott) on May 23rd, 2016.

What Cards Count Towards The 5 Card Limit?

It’s important to note that 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 & three Bank of America cards then you’d likely be denied for a Chase card (affected by this rule) due to being over 5/24.

Another thing to note is that it’s based on new accounts being reported, so applications that are denied won’t count towards your total and neither will some business cards that don’t report on your credit report (more on this below). Because new accounts will be reported to all three of the nationwide credit bureaus, it doesn’t matter what particular credit report Chase pulls.

Because authorized user accounts usually show on your credit report, these will also be counted as a new account and count towards the 5/24 rule. Although it’s possible to get some representatives to not count them when calling reconsideration.

[Read: How Does Being An Authorized User Affect Your Credit?]

What Cards Does This Affect?

Chase has a lot of credit cards, this 5/24 rule applies to the following cards:

What Cards Aren’t Affected?

The following cards don’t have this rule applied to them:

Why Aren’t These Cards Affected?

We don’t know for certain, but I assume it has something to do with how these partnerships are structured. Two things that are interesting:

  • These cards do not have business versions available (Marriott does have a business card and that isn’t affected)
  • These cards do not allow you to generate referral links (apart from the Disney/Hyatt cards that do)

There is nothing to say that this rule won’t be applied to these cards in the future. Similarly there is nothing to say that this rule will be applied to these cards in the future.

How To Get Around This Rule

There are a number of exemptions to this rule and ways to get around it.

‘Selected For You Offers’

Update: This no longer works.

Online it’s possible to see if you have any offers that have been ‘selected for you’. We discuss this in great detail in this post.

Chase Private Clients (CPC)

Update: This is no longer working unfortunately.

If you’re a Chase Private Client, then this rule likely won’t affect you. Frequent Miler has shared his experience about that in this post here. There are also other reports of this happening elsewhere. It doesn’t seem to matter whether you apply online or in branch.

See Using Chase Private Client Status to Get Approved for Credit Cards for more details.

In Branch Offers

Some people have been approved despite being over 5/24 when they have applied for a card at a Chase branch. Most successful reports have been of people that have been told they were pre-approved for a credit card (without them prompting the banker to look for pre-approved offers). This leads me to believe that if you receive one of these ‘pop up’ offers in branch then 5/24 is unlikely to apply – but if you specifically ask for them to check for pre-approved offers they are basically just using the online checker and this doesn’t circumvent 5/24.

Some people have been approved even when over 5/24 and specifically asking for pre-approved offers – so this might work as well. It’s by no means guaranteed though. I’d wait to see if they say you’re pre-approved before asking for offers as that should give you a better success rate.

ReadChase PreApproval In-Branch Frequently Asked Questions

In Branch BRM Paper Offers

If you’re able to find a BRM (business relationship manager) banker and get them to submit a paper application for a business credit card this might bypass the 5/24 rule as it goes to a different department that doesn’t enforce this rule. We discuss this in more depth here.

Targeted/Invite Offers

Some people have been able to bypass 5/24 when they have received an invite offer in the mail with an invitation code. These offers look like this (thanks to  E* from Demflyers):

Screen Shot 2016-05-24 at 10.54.22 PM

Notice the invitation number at the top right. Doesn’t seem like these are really being sent out anymore and if they are might no longer bypass 5/24.

Random Success

Recently some people have been able to get around the 5/24 rule randomly, we’re not exactly sure why this is the case. At first we thought it might have been because they received a targeted sign up bonus or mail out offer, but then plenty of people with those offers have also be denied so that doesn’t seem to be the case.

Business Cards Not Reporting

Not all business cards show up on your personal credit report. This means that theoretically you could have 10+ business cards and none of them would be counted towards your five card limit. You can view what business cards do/don’t report by clicking here. Keep in mind that even though Chase business cards do not normally report, they will still be counted as Chase has this information internally. Update: It seems like Chase business cards aren’t counted.

Authorized Users & Reconsideration

If you have five cards reporting as a new account within the past two years and ONE of them is an authorized user account then it’s possible to call reconsideration and plead your case. They have the ability to approve you if this is the case, but it’s still up to the credit analyst to make the call. You can view reconsideration numbers by clicking here. You can also read this post on how to remove authorized user accounts from your credit report.

[Read: Tips For Reconsideration Phone Calls]

Our Verdict

It was getting a little confusing having this information over multiple blog posts, so I hope it’s helpful to have it in one place. I’ve also expanded on some of the ways to get around this rule. If you have any questions, please ask in the comments.

F.A.Q

Do charge cards count towards the limit?

Yes.

Do store cards count towards the limit?

If the card can be used outside of a specific store (e.g it has a payment network such as Visa, Mastercard, American Express or Discover) it will be counted. If it can only be used for a specific store, it will not be counted. Data points: 1, 2

Do auto loans count towards the limit?

No they don’t count. Unsure, although I’d assume they wouldn’t because they aren’t a bank card.

Do mortgages/home loans count towards the limit?

No they don’t count. Unsure, although I’d assume they wouldn’t because they aren’t a bank card.

Do student loans count towards the limit?

According to this data point, they do.

If I’m at 5/24, does the rule apply to me?

Yes, you need to have 4 new accounts or less showing on your report otherwise the 5/24 rule will apply to you.

How do you removed authorized user accounts from your credit report?

This page has detailed information on how to do this.

Can I apply for two cards at the same time when I’m at 4/24 and get approved for both?

According to this comment it is possible. And another datapoint.

How is 24 months calculated?

It goes by calendar months, for example say if you’re under 5/24 on January the 8th you actually won’t be eligible until February the 1st. Data point and another datapoint. Another data point suggests you’ll be eligible on January 1st & another & another.

Not 100% sure why there is a discrepancy in this. One theory is that Experian reports account openings at the first of the month. So if they pull Experian only then they would use the January 1st date, otherwise it would use the February 1st date.

Can You Call Reconsideration After You Fall Under 5/24?

Yes, in the example above if you accidentally apply on January 9th then you could call reconsideration on February 1st and then get approved.

Does applying for a banner offer on through the Chase app bypass 5/24?

The Chase app sometimes shows banner offers (see image below), these do not bypass 5/24. More information here. Additional DP says if you’re pre-qualified through the app it does bypass 5/24.

chase app offer

 



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There are reports of getting approved for the Marriott card while being over

Few and far between, but the data points I saw were for the Marriott Business not being subject to 5/24. Plenty of denials for the personal.

agreed with Rob. lots of data points of Marriott business getting approved even if over 5/24.

Here’s a DP: applied on 5/26 and got approved for the Marriott Business after like a few weeks. I’m definitely way over 5/24 and I didn’t call recon.

Same here. I’m way beyond 5/24 and got approved for a Marriott Biz after the new rules went into effect.

[deleted]

William Charles this shouldn’t appear on DoC…

I called for this card before I applied and was told that it falls under their 5/24 so I didn’t apply because I’m over the 5/24.

I’m sitting right at 5/24. Won’t be at 4/24 until February. Ugh.

Numerous reports of getting approved for the Marriott Business card while being well over 5/24.

Does Auto loans also count against the 5 new account limits?

I don’t think so

Stupid question, but let’s say I’m 4/24…. and I want to apply for 2 cards. Can I apply for 2 Chase cards the same day (Maybe 1 Hour gap inbetween?) and be approved for both – since as far as my credit card is concerned I should be 4/24 regardless of the first or second. Obviously when both are finally reported I would be at 6/24

I got the personal Marriott card in April and I was at 17/24 + 1AU (not instant approval-it sat for a few weeks and I did not call). My spouse got the United & SW and was at 13/24 (both instant approval). Maybe we got in before the rule change? We do reduce our credit lines after approval to a more reasonable number, and I pay in full before the statement cuts for all cards except 1 ( sometimes 2 if I mess up). I also got a business card at the same time and I am at 5/24 for business cards.

Oh, and in the past we have had auto loans and a mortgage with Chase. Maybe that’s a factor.

5/24 applies at about May 24. You got your card at April so it is not related with 5/24. By the way, you said “I am at 5/24 for business cards”, did you mean you have more than 5 business cards? How many business card do you have with chase?

I now have 4 with Chase, 1 with Amex, 1 with Citi and 1 Amex that I closed. I I guess I was 6/24 when I was approved.

Yes, you got in before the rule change. Prior to May 2016, Chase co-branded cards (i.e. Marriott, Southwest Airlines, etc) were not under the 5/24 rule.

Hi DOC,

Thanks for your post. I am going to chase branch to ask for pre-approved offers so this information is very important for me. “This leads me to believe that if you receive one of these ‘pop up’ offers in branch then 5/24 is unlikely to apply – but if you specifically ask for them to check for pre-approved offers they are basically just using the online checker and this doesn’t circumvent 5/24.” I thought there were some internal system for the bankers to check pre-approved offers if you asked them? But as you mentioned, they were also using online checker which can’t get around 5/24, and if there is no “pop up offer”, I should not ask.

I saw some data points indicating that they were opening checking account in chase branch and after that asking if there are some pre-approved offers for them, then they got approved for it. I will think this is “no pop up offers but ask for offers”?

Is it 5/24 besides the new card you’re applying for, or including?

Just tried for the CSP last night and got it with being over 5/24. I believe it was because I had the pre-targeted offer come up when I went to Chase’s website and accepted the offer.

Did the targeted offer come with an invitation code?

No, sorry I meant a pre-approved offer. Went in, filled out my info, it came up and clicked from there, approved immediately.

Yeah, makes sense

I was approved for Chase Marriott Business last week. I am at 15+/24. I wasn’t instantly approved and had to shift credit from my Ink card.

Question- What counts as a “new account?” for example if I happen to apply for and get a new auto loan, does this count towards the 5/24? is it anything? or just limited to credit cards?

I don’t think other loans count. Just credit cards.

I got an autoloan last year. I was still approved for ink cash at 4/24.

Diamond Vargas

Any idea if AU cards that have since been canceled will remain on one’s report?

That’s weird. I got my sw plus approved in May 2016 and have had 7 credit cards from other banks approved.

Was it done in-branch or via targeted offer?

Chuck, I think I found SW from you guys so I did it online opened to everyone.

Do auto loans and/or mortgages count toward the limit?

You meant to write 2 years here I’m sure.

“If you have five cards reporting as a new account within the past five years”

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