The Chase 5/24 Rule is the most important rule to know for credit cards. This rule affects your ability to get Chase cards and your strategy for other cards.
If you don’t know this rule, your Chase application could be automatically denied even if you have a great credit score.
What is the Chase 5/24 Rule
Chase will automatically deny your card application if you have opened five or more personal credit cards in the last 24 months.
This rule applies to both Chase personal and business credit cards. Although most business cards don’t count towards your 5/24 number.
What Cards are Subject to the Chase 5/24 Rule?
All Chase credit cards are subject to the 5/24 Rule.
How Do I Calculate My 5/24 Status?
How is the 24 Month Period Calculated?
Chase uses calendar months to calculate your 5/24 status. This means you have to wait 25 months from opening a card for it no longer to count towards Chase’s 5/24 Rule.
What Accounts Count Towards 5/24?
- All personal credit cards opened with any bank including closed cards.
- All personal charge cards (like the American Express Platinum or Gold).
- Business credit cards with Capital One, Discover, and TD Bank. These banks report business cards to personal credit reports.
- Most store credit cards. If you are able to use the store card for other merchants, it typically counts towards the 5/24 Rule. If you are only able to use the card at that store, it typically does not count towards the 5/24 Rule.
- Credit card product changes that result in a hard pull of your credit. For example, if American Express required a hard pull for you to switch from the Green to Platinum card, that product change would count towards your 5/24 status.
- Authorized user credit cards from another person’s personal credit or charge card.
Authorized Users and the 5/24 Rule
Authorized user cards typically count towards your 5/24 status. If you were denied due to an authorized user account, you can sometimes request Chase not count that account towards your 5/24 number by calling 1-888-270-2127.
Alternatively, you could request the card issuer or credit bureau (TransUnion, Equifax, or Experian) remove the authorized user card from your credit report. Here’s a good guide on requesting removal, but your success will likely vary.
Accounts that Don't Count Towards the 5/24 Rule
The following accounts do not count towards the Chase 5/24 Rule:
- Business credit cards (except Capital One, Discover, and TD Bank).
- Auto loans, student loans, and mortgages.
- Denied credit card applications.
Exceptions to the 5/24 Rule
There are only a few exceptions to the 5/24 Rule, which all require you to have a good pre-existing relationship with Chase.
But there is no exact formula for triggering these offers that bypass the 5/24 Rule. Just keep checking these offers regularly to see if your are targeted.
Prequalified Offers
Chase Prequalified Offers You can check to see if you are pre-approved for any credit cards by filling out this form on Chase.com.
To verify that the credit application will bypass the 5/24 Rule, look at the credit terms for a “fixed APR.”
The terms for a fixed APR will say “0% Intro APR for the first 15 months that your Account is open. After that, 23.74%. This APR will vary with the market based on the Prime Rate.”
The terms for a variable APR (that doesn’t bypass the 5/24 Rule) will say “0% Intro APR for the first 15 months that your Account is open. After that, 14.99% to 23.74%, based on your creditworthiness.”
"Just for You" or "Selected for You" Offers
Just for You or Selected for You offers typically bypass the 5/24 Rule. To check these offers, sign into your Chase account, click “Open an account” and then click “Just for you.”
If you are targeted, you should see a green check. You should still verify that the card’s terms has a fixed APR to ensure that the 5/24 Rule does not apply.
For business owners, Chase has a similar program but with black stars instead of green checks.
Business Relationship Managers
If Chase has assigned your business a “business relationship manager,” they can help you bypass the 5/24 Rule for business cards by submitting a paper application.
Other Chase Application Rules
Chase has several other application rules you should take into account when applying.
One Sapphire Rule
Chase has two great travel credit cards, the Sapphire Reserve and the Sapphire Preferred.
However, Chase limits you to only one of these cards.
You will have to decide if you want the Sapphire Reserve, which has a $550 annual fee, but a $300 travel credit, airport lounge access, and many other great benefits.
Or do you want the Sapphire Preferred, which has a $95 annual fee, earns 2x points on travel and dining, trip-delay protection, and primary rental car insurance.
2/30 Rule
Chase will automatically deny your credit application if you have opened more than 2 personal credit cards within the last 30 days.
For business cards, the limit is one card every 30 days.
We recommend you space out your Chase applications to one application every 45 days because Chase has a history of shutting down all of a customer’s credit card accounts if they have opened too many cards too quickly.
Southwest Airlines Rule
Chase limits you to one Southwest personal card and one Southwest business card.
If you currently have a Southwest credit card and want a new bonus, you would need to cancel that card and re-open a new one at least 24 months from that card’s sign up bonus.
You could previously sign up for two personal cards and get Southwest’s great Companion Pass, but now you have to sign up for one personal and one business card to reach the Companion Pass.
5/24 Card Strategy
Figuring out the best mix of Chase credit cards is tough. There are a lot of great cards out there.
You first need to determine if you can open up a business credit card. You may qualify for a business card if you are an independent contractor, own rental property, sell things online, or perform services.
However, Chase business cards are harder to get right now due to the effects of COVID-19 pandemic.
We have outline two sets of strategies below based on whether you qualify for business credit cards.
You should recalculate your 5/24 status after every card application. If you exceed 5/24, you may want to consider waiting until you are back under again so you can get more Chase cards.
There will be a point where you have to decide you want to focus on other credit cards and abandon trying to stay under 5/24. But until you are over 5/24, you should focus only on Chase cards.
5/24 Strategy with Business Cards
Business cards do not count towards the 5/24 Rule, which is a great way to rack up a lot of points before going over 5/24. You can also sign up for other business cards from American Express, Barclays, and Citi during this time.
One of the amazing deals in travel is the Southwest Companion Pass, which can be achieved by opening one Southwest personal and one Southwest business credit card when their offers are at least 60,000 points.
If you don’t want the Companion Pass, I would try to apply for the Ink Preferred. It is possible to get the Southwest Business and Ink Preferred, but you need enough revenue to support both credit limits.
After the Southwest personal card, I suggest you follow the strategy below.
5/24 Strategy with Only Personal Cards
I suggest you start with either the Sapphire Preferred or Sapphire Reserve. Both cards offer valuable travel protections. I recommend the Sapphire Reserve if you travel more than four times per year.
After a Sapphire card, I suggest either the United Explorer or the Hyatt card.
The United Explorer is a good option because it helps you avoid United’s awful basic economy, gives you two free annual lounge passes, free checked bags, and better award space.
The Hyatt card gets you one free hotel night per year, 4x points at Hyatt, and Hyatt Discoverist elite status.
If you are still under 5/24, below are some more suggestions:
- IHG Premier– Free annual hotel night and Platinum elite status.
- Freedom– The Freedom card has 5% cash back rotating categories, and 1% cash back everywhere else. Cash back can be converted to Ultimate Rewards points.
- Freedom Unlimited– The Freedom Unlimited earns 1.5% cash back everywhere (or 1.5x Ultimate Rewards points).
- British Airways or Iberia– Both have big sign up bonuses and nice benefits for big spenders.
- A Southwest Card if you didn’t pick one up in the business card section above.
After 5/24 Strategy
When you are done with trying to stay under 5/24, you should focus on other card issuers.
I suggest you next focus on Bank of America, US Bank, Barclays, Capital One, and Wells Fargo credit cards. These issuers are more credit inquiry sensitive than American Express or Citi.
My favorite next cards are:
The Verdict
The Chase 5/24 Rule is one credit card rule you must think about with every credit card application.
While under 5/24, it is important to sign up for only Chase personal credit cards. Signing up for another issuer’s card hurts your ability in the long run to earn a lot of points.
Frequently Asked Questions
Chase will automatically deny your card application if you have opened five or more personal credit cards in the last 24 months.
All Chase cards are subject to the 5/24 Rule.
No. Chase business cards do not count towards your 5/24 number, but you must be below 5/24 to get approved.
There are only a few exceptions to the 5/24 Rule:
- Pre-Approved by Chase
- Selected for You Offers
- Applications with Business Relationship Managers
Closed accounts within the last 24 months count towards your 5/24 total.
Yes. The 5/24 rule will not prevent you from adding an authorized user to an existing Chase card.
None. All Chase cards are now subject to the 5/24 Rule.
American Express does not have a 5/24 Rule, and their application rules are relaxed in comparison to Chase.
Yes, but you put yourself at risk for a shutdown.
Applying for two cards in the same day is a way to get two cards when you are at the 4/24 limit. However, Chase has started to shutdown customers who acquire too many credit cards too quickly.
If you are going to do it, I suggest you lower your credit limits on your other Chase credit cards to reduce your risk.
