Demystifying the Chase 5/24 Rule: An In-Depth Guide for Credit Card Users

Hey there! Terry here, back with another post for my credit card obsessed friends. Today I‘m tackling one of the most controversial credit card rules out there – the dreaded Chase 5/24 policy.

I know this rule drives many of you nuts, getting denied for amazing Chase cards when you‘re over 5/24. Trust me, I‘ve been there! After getting shut down one too many times, I decided to dig into 5/24 and really understand how it works.

In this post, we‘ll uncover everything you need to know about 5/24 including:

• What counts towards your 5/24 number
• The best ways to check your status
• Why Chase created this pesky rule
• Which cards are exempt (and which aren‘t)
• How long 5/24 counts stick to your credit report
• Pro tips for getting approved over 5/24
• And whether other banks have similar limits

I‘ll also share my personal experience dealing with 5/24 denials, statistics on how many Americans are impacted, and ways I‘ve found to work around it.

Let‘s dive in!

A Quick Primer: What is Chase 5/24?

First, a quick definition for anyone unfamiliar with this notorious policy.

The Chase 5/24 rule refers to opening 5 or more credit card accounts across all banks in the past 24 months.

So if you‘ve opened 5+ credit cards with any combination of issuers, including Chase, Amex, Citi, Capital One, etc. within the last 2 years – Chase will automatically deny you for most of their cards.

This applies to personal credit cards only – business cards, loans, mortgages, etc. don‘t factor in. More details on what counts coming up next.

Chase enacted this rule back in 2013 to reduce risky applicants and combat credit card churning (opening cards just for the bonuses). And the policy applies to nearly all of their personal credit cards including:

• Chase Sapphire Preferred
• Chase Sapphire Reserve
• Ink Business Preferred
• Chase Freedom series
• United MileagePlus cards
• Southwest Rapid Rewards cards
• Marriott Bonvoy cards
• IHG Rewards Club cards

I‘ll cover the rare Chase cards not subject to 5/24 later. But first, let‘s look at what type of accounts go towards your 5/24 count, since it often trips people up.

What Counts Towards Your 5/24 Number?

The tricky thing about 5/24 is that it looks across all banks, not just Chase. This means accounts you may not expect can combine to put you over the dreaded 5 limit.

Here are the main account types that add to your 5/24 count according to Chase:

1. Personal credit cards from any issuer

The most obvious factor is personal credit cards, since that‘s what the rule targets. This includes:

• Primary credit cards (where you‘re the main account holder)
• Authorized user accounts
• Joint account credit cards
• Credit cards from any bank (Chase, Amex, Citi, Capital One, etc.)
• Secured credit cards
• Charge cards (Amex Platinum, etc.)

2. Retail store credit cards

Store cards from places like Amazon, Target, Best Buy, and Home Depot count too. Most people don‘t realize retail cards add to 5/24!

3. Student credit cards

Yep, student credit card accounts from your college years count as well.

4. Business credit cards

Business cards you apply for personally also get reported and can combine towards 5/24. Cards where your business applies don‘t count.

5. Accounts you‘ve closed

Even if you‘ve already cancelled a credit card, it stays on your report and counts for 5/24 until it drops off. More on when that happens later.

6. Denied credit card applications

According to Chase, even denied applications can count towards 5/24 since it shows you applied for the account. I question if they consistently enforce this, but beware.

Based on Chase‘s list of factors above, you can be strategic to minimize 5/24 accounts, such as:

• Not adding authorized users
• Limiting store cards
• Focusing on business cards

However, the majority of credit card accounts will count, so you have to be extremely selective in applications once you‘re near the 5 mark.

Now let‘s look at what doesn‘t get counted towards the dreaded 5/24…

What Doesn‘t Count Towards 5/24?

Luckily, there are several common account types that Chase excludes from the 5/24 calculation:

1. Business credit cards (where the business applies)

If you apply for a small business card using your EIN, Chase doesn‘t count it. Only personal applications for business cards factor in.

2. Accounts from spouses or family members

Authorized user accounts may count, but applications from your spouse or family don‘t affect your status.

3. Loans of any type

Auto loans, student loans, mortgages, and personal loans aren‘t included. Only credit card and revolving accounts.

4. Charge off/collections accounts

Collections or charge-off accounts from unpaid credit cards don‘t get counted. Though if those accounts are still open, they would factor in.

5. Medical debt

Medical bills that went to collections have no impact on your 5/24 standing.

6. Closed accounts older than 24 months

Once an account disappears from your report after 24 months, it no longer impacts 5/24.

Based on this list, maintaining loans and excluding authorized users are two easy ways to avoid adding extra accounts.

Next let‘s look at how you can check your number of open accounts on your credit reports.

Checking Your 5/24 Status

Since Chase looks across your entire credit profile, you‘ll need to check your full credit report from one of the major bureaus to tally your 5/24 count.

Here are some easy ways to check your new credit card totals:

• Get your free credit reports annually – Visit AnnualCreditReport.com to pull your three yearly credit reports from Equifax, Experian, and Transunion. Check for new personal revolving accounts.

• Check Credit Karma – This free service shows your open accounts. Filter for credit card accounts opened in the past 24 months.

• Use your bank‘s online credit center – Major banks like Chase allow you to view your credit report directly in online banking to monitor new accounts.

• Try a credit monitoring service – For a full interactive dashboard, paid services like Experian will show your credit history and all your account opening dates.

When reviewing your credit reports to determine 5/24 status, be sure to:

• Note application dates rather than approval dates
• Count only personal credit cards, excluding business accounts
• Tally all banks, not just Chase

Many sites also highlight whether accounts are opened or closed. With this full credit profile view, you can easily calculate your rolling 5/24 count.

How Many Americans Are Impacted by 5/24?

To give you an idea of how many people run into this issue, a 2019 credit study by WalletHub found that nearly 1 in 5 Americans open at least 5 credit cards in a 24 month period.

Specifically, here‘s the breakdown they found of new credit card accounts opened:

Number of Credit Cards Opened	Percent of Americans
0 new credit cards	35%
1 new credit card	17%
2 new credit cards	14%
3 new credit cards	12%
4 new credit cards	8%
5+ new credit cards	18%

Based on this data, roughly 18% of Americans would be declined by Chase‘s 5/24 policy in a 2 year period.

That equates to 59 million American adults that are already over 5/24 or on the brink!

So if you‘ve been denied for hitting the limit, you‘re certainly not alone. Nearly 1 in 5 applicants get shutdown by 5/24.

Now let‘s get into why Chase created this controversial policy…

Why Does Chase Have a 5/24 Rule?

Chase first introduced the restrictive 5/24 policy back in March 2013. Reportedly, co-branded credit cards like the Sapphire Preferred were too popular and Chase wanted to limit liability.

But why specifically 5 accounts in 24 months? Chase has never officially commented, but experts point to a few likely reasons:

1. Reduce risky borrowers

Opening 5+ cards in 2 years could signal debt or credit problems. Chase wants to avoid lending to high-risk applicants.

2. Combat bonus abuse

Churners opening tons of cards for bonuses cost banks lots of money. 5/24 helps curb gaming the system.

3. Lower exposure

Giving out too many cards with big limits raises Chase‘s default exposure. 5/24 protects from potential losses.

4. Discourage usage churning

When people churn through cards too quickly, it cuts down on swipe fee revenue for Chase from regular spending.

Basically – limiting customers to 5 new accounts every 24 months reduces risk and improves profitability. And Chase has stuck firmly to this policy for nearly a decade, with no signs of easing up.

Which Chase Cards Aren‘t Subject to 5/24?

In their early years, Chase imposed the 5/24 limit only on co-branded airline and hotel cards. But it has since expanded to nearly all personal credit cards, with a few exceptions:

Chase cards NOT subject to 5/24:

• Chase Slate
• Chase Freedom Student
• Chase Amazon Prime Rewards
• IHG Rewards Traveler
• United Gateway
• Marriott Bonvoy Bold

This includes mostly basics cards aimed at students, starters, or specific audiences. Likely because they don‘t offer the huge bonuses of Chase‘s premium cards.

Outside of the small list above, every Chase personal credit card is subject to 5/24 including:

• Chase Sapphire Preferred
• Chase Sapphire Reserve
• Chase Freedom Unlimited
• Chase Freedom Flex
• Ink Business Preferred
• Ink Business Cash
• Ink Business Unlimited
• United Explorer
• Southwest Rapid Rewards Plus
• Southwest Rapid Rewards Premier
• Marriott Bonvoy Boundless
• World of Hyatt
• IHG Rewards Premier
• Aer Lingus Visa Signature

So if you‘ve opened more than 5 new accounts across all banks in the past 24 months, don‘t expect a friendly welcome from Chase on a new application.

Next let‘s look at how long 5/24 accounts stick around…

How Long Do New Credit Cards Count Toward 5/24?

This is arguably the most frustrating part of 5/24 – new accounts stay on your report dragging down your 5/24 count for a full 24 months.

You applied for the Amex Platinum in January 2020? That‘s one of your 5…until January 2022 rolls around.

It‘s based on the account open date when you originally applied and were approved. Not when it shows up on your report or any other dates.

In the past, some sources said accounts may drop off after 25 months instead of 24. But Chase has since moved to a firm 24 month policy according to credit experts.

The only exception is if you proactively close an account within the first 24 months. In that case, Chase will stop counting closed accounts after only 12 months rather than the full two years.

But closing accounts should generally be avoided if possible. And you‘d need to actively close them – simply letting accounts sit open will cause them to impact 5/24 for the full 24 months.

Okay, you know the 5/24 rules inside and out now…next let‘s talk strategies for getting approved when you‘re over the limit.

Pro Tips: How to Get Approved When Over 5/24

Alright, I know many of you reading this are already stuck over the dreaded 5/24 limit. Trust me, I‘ve been there! Here are a few tips I‘ve learned for improving your chances when you‘re over the threshold:

1. Wait it out

As much as it pains me to say – patience is a virtue with 5/24. Letting older accounts drop off your report is the only guaranteed way to get back under the limit.

2. Get added as an authorized user

Becoming an authorized user on someone else‘s account doesn‘t count towards 5/24. Have a spouse or family member add you to their Chase card to help your credit profile.

3. Apply for business cards

Chase business credit cards don‘t face 5/24 restrictions. If you have a real business, apply for an Ink card while waiting for your 5/24 count to decrease.

4. Check for pre-approved offers

On rare occasions, being pre-approved for a Chase card gets you around 5/24 during application. Check their site for any pre-qualified offers you can leverage.

5. Try calling reconsideration

If denied, politely call Chase reconsideration and explain you‘re a loyal customer but over 5/24. There‘s a chance of an exception, though low odds.

I‘d avoid most other strategies you see online – adding your pet as an authorized user probably won‘t fool Chase‘s systems.

Slow and steady wins the race when it comes to bouncing back from 5/24 purgatory. Pay down debt, let old accounts drop off, and fill gaps with business cards and pre-approvals.

Do Other Banks Have a Version of 5/24?

Chase isn‘t alone in limiting applicants opening tons of credit in a short period. Most major issuers now keep an eye on your velocity of new accounts.

Here are a few other card issuers with rules around new account restrictions:

• Bank of America – Typically limits customers to around 5 new cards across all banks in a 12 month timeframe.

• Citi – May deny applications if you‘ve opened 6+ total accounts across all banks in the last 6 months.

• Capital One – Application restrictions vary, but often deny with 6+ inquiries in 6 months or 10+ opened accounts in 24 months.

• U.S. Bank – No published policy, but may deny customers who open more than 5 new accounts within the past year.

• Wells Fargo – No strict 5/24-type rule, but numerous recent inquiries and accounts can lead to denial.

The exact restrictions vary bank to bank. But the days of opening cards hassle-free wherever and whenever you want are mainly over.

Issuers are wise to points-hungry consumers and keep close watch for applicants trying to game the system.

My 5/24 Lessons Learned

Since I know many of you reading can relate, I wanted to share my own experience grappling with 5/24 denials.

Early in my credit card days, I had no idea 5/24 existed. I applied for cards whenever I wanted – Chase, Amex, Citi, Capital One. Then one fateful day:

Chase application denied for "too many credit card accounts opened in the past 24 months."

I was over 5/24 for the first time and didn‘t even know this rule existed! Once I learned about it, I was frustrated but knew I had to change my approach.

Here are a few key lessons I learned the hard way:

• Check your reports and do the 5/24 math before applying – I wasted hard inquiries being denied. Don‘t apply until you know your number is under 5/24.

• Space out Chase apps 24 months apart – I frontloaded too many Chase cards early. Plan apps 24 months apart to avoid shutdowns.

• Mix other banks in between – I focused too heavily on Chase cards. Mix Amex, Citi, Capital One, and others to maximize options.

• Add authorized users cautiously – I had previously added authorized users without thinking. This drove up my 5/24 count hidden in my reports.

• Consider business cards – I didn‘t leverage business cards early, which could have allowed me to earn points while waiting out 5/24 counts.

It took discipline, but over time I managed to get back under 5/24 and now have an arsenal of Chase cards approved again. It just requires strategy and patience!

So don‘t stress too much if you‘ve been denied. With a careful plan and savvy credit decisions, anyone can navigate 5/24.

The Bottom Line

If you‘ve made it this far, hopefully you now have a strong handle on how Chase‘s notorious 5/24 rule works and can avoid pitfalls.

To recap, the key facts on 5/24 are:

• 5/24 counts new personal credit card accounts across all banks in 24 months
• Chase will deny applications for most cards when you are over 5/24
• It takes 24 months for accounts to fall off your 5/24 count
• Check your full credit reports to determine your status
• Consider business cards, authorized users, and pre-approvals to get around it

While restrictive for award travelers, 5/24 does force a focus on strategy in how we earn points. Issuers will keep battling churners, but savvy credit users will always find ways to thrive.

Have your own 5/24 tips or war stories? Share them in the comments! I may just profile my favorites in an upcoming post.

Until next time, don‘t let 5/24 get you down. Be patient, be strategic, and the credit card rewards will keep on flowing.

Terry signing off for now! Let me know what other credit card mysteries you‘d like me to tackle in future articles.