The Chase 5/24 Rule

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When it comes to credit cards, Chase is one of the most popular issuers, but there’s one rule that every credit card enthusiast must know: the Chase 5/24 rule. If you’ve ever wondered how this rule affects your credit card strategy, you’re in the right place. In this article, I'll break it down into four key sections:

1. Why you should care about the Chase 5/24 rule

2. What exactly the Chase 5/24 rule is

3. How to calculate your Chase 5/24 status

4. Strategies to manage your Chase 5/24 status effectively

Why You Should Care About the Chase 5/24 Rule

Before diving into the details of what the 5/24 rule is, let’s first discuss why it’s something you need to care about—whether you’re a seasoned credit card user or just getting started.

Many people hate the Chase 5/24 rule, and understandably so. It limits your ability to apply for new credit cards with Chase if you’ve been approved for too many cards recently. The rule impacts nearly everyone with even a slight interest in Chase cards. And believe me, Chase’s cards are powerful and worth considering.

Chase is home to some of the most popular and user-friendly credit cards for beginners and advanced users alike. Whether you’re looking for luxury travel cards like the Chase Sapphire Reserve® or you’re building a cost-effective setup like the Chase Trifecta (made up of the Chase Freedom Flex®, Chase Freedom Unlimited®, and Chase Sapphire Preferred® Card), Chase offers flexible options for all types of cardholders.

If you’re still skeptical about why Chase cards are important, I encourage you to do some research or watch a video on the Chase Trifecta after reading this article.

What Is the Chase 5/24 Rule?

The Chase 5/24 rule is a guideline that Chase uses to limit the number of credit cards you can open in a specific time frame. Here’s how it works:

• If you’ve been approved for five or more personal credit cards from any bank in the past 24 months, Chase will automatically deny your next credit card application.

• This isn’t a personal decision made by a Chase representative. It’s algorithm-based, meaning that once you’ve crossed the threshold of five new accounts in 24 months, you’re likely to get denied—no matter how much Chase likes you as a customer.

• However, if you are denied, it’s always worth calling the Chase reconsideration line. Sometimes the denial might not be because of the 5/24 rule, so it’s a good idea to confirm the reason.

How to Calculate Your Chase 5/24 Status

Now that you understand what the rule is, you’re probably wondering: how do you calculate your current 5/24 status?

Step-by-Step Guide:

1. Check Your Credit Report: Use a tool like Credit Karma or any other service to pull up your credit report.

2. Scroll to the Accounts Section: Look at your open credit card accounts and their opening dates.

3. Count Cards Less Than Two Years Old: Count the number of personal credit cards that have been opened within the last two years.

Key Things to Remember:

• Only Personal Credit Cards Count: Business credit cards generally don’t count toward your 5/24 status (unless you have certain business cards from banks like Capital One, which report to personal credit).

• Authorized User Cards: If you’re an authorized user (AU) on someone else’s card, it will count toward your 5/24 limit. If this is pushing you over, you may be able to get it excluded by calling Chase, but there’s no guarantee.

• Loans Don’t Count: Mortgages, auto loans, and similar accounts don’t affect your 5/24 status, although there are rare exceptions.

Now that you know how to calculate your 5/24 status, the next question is: when do your cards fall off your 5/24 count?

When Do Cards Drop Off?

Cards drop off your 5/24 count one by one, not all at once. Once a card is more than two years old, it no longer affects your 5/24 status. However, I recommend waiting until the first day of the month following the card’s two-year anniversary to ensure Chase’s algorithms update properly.

Strategies to Manage Your Chase 5/24 Status

If you’re someone who loves credit card rewards, you’re probably wondering how to manage your 5/24 status while still applying for new cards. Here are some effective strategies:

Track Your 5/24 Status with a Spreadsheet

I personally use a spreadsheet to keep track of all my credit cards and rules like 5/24. Every time I get a new card, I update the sheet with the card’s opening date and calculate when it will drop off my 5/24 count.

Apply for Chase Cards Early

If you’re just starting your credit card journey, I recommend prioritizing Chase cards while you’re still under the 5/24 limit. This way, you don’t have to worry about the rule as much while you’re building your setup.

Leverage Business Credit Cards

If you’re further along in your journey and want to keep applying for cards without increasing your 5/24 count, consider applying for business credit cards. Since most business cards don’t report to personal credit, they won’t count toward your 5/24 limit. But remember, if you’re going for a Chase business card, you still need to be under 5/24 when applying.

Final Thoughts

The Chase 5/24 rule is a hurdle for anyone looking to build a solid credit card strategy, but with careful planning, it can be managed effectively. Whether you’re early in your credit journey or already have a high velocity of cards, managing your 5/24 status can help you take full advantage of the Chase card ecosystem.

As always, remember that every credit card strategy is different, so make sure to tailor yours to your personal goals and financial needs.

Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.