What is the Chase 5/24 rule?
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Updated 11:02 a.m. UTC Nov. 14, 2023
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Getting a new credit card and earning the associated welcome bonus is one of the quickest ways to rack up a pile of rewards, and Chase is one of the top issuers of rewards cards on the market today. However, banks implement rules restricting welcome bonuses to discourage people from churning cards and becoming unprofitable customers. One of the most widely-known policies is the unwritten Chase 5/24 rule.
The 5/24 rule blocks applicants from opening a Chase credit card if they’ve opened five or more cards from any issuer in the past two-year period. Understanding this policy could be the difference between rejection or getting a lucrative new card. Learn how it works, which cards it affects and how to check your 5/24 status.
Chase Sapphire Reserve®
How does the Chase 5/24 rule work?
When you apply for a new credit card, the card issuer has your permission to pull your credit report. Chase will review the new accounts you’ve opened in the last 24 months to see if you’ve opened five or more new credit cards in the last two years from any bank. This is where the term “5/24” comes from.
Chase’s 5/24 rule limits the number of new Chase credit card accounts that can be opened by the same applicant in a short period of time. This can weed out someone who plans to “churn” credit cards to earn multiple welcome bonuses as rapidly as possible, then close the account shortly thereafter, which is expensive for banks.
Unlike most other bank application rules, Chase’s 5/24 rule includes all credit cards you’ve opened with any issuer, not just with Chase. Applications for a new Chase card coming from anyone who is at or over 5/24 will generally be declined by the bank.
What cards does the 5/24 rule affect?
When the Chase 5/24 rule was first implemented in 2016, certain credit cards were excluded. However, as time passed, Chase updated its guidelines to include all Chase credit cards. The 5/24 rule affects both personal and small business credit cards, including both Chase-branded cards and co-branded cards.
However, business credit cards from other issuers may not be counted. For example, if you applied for and were approved in the last 24 months for four consumer cards from any issuer (including Chase) and one small business credit card from another issuer, your status would likely be considered by Chase to be 4/24. That’s because business credit cards from most issuers don’t typically appear on your personal credit report.
But note, Chase will count their own small business cards toward your 5/24 count. And, if you have a business card from another issuer that shows on your personal credit reports, expect that to count for 5/24 purposes too. For example, some Capital One business cards have been known to show on the cardholder’s personal credit.
In short, it’s smart to check your 5/24 status before applying for any Chase-issued credit card.
How to check your 5/24 status
If you’re unsure of your Chase 5/24 status, there are ways to check before applying for a new Chase card:
- Review your credit report. Obtain a free copy of your credit report via AnnualCreditReport.com from each of the three major consumer credit bureaus — Experian, Equifax and Transunion. Review your credit reports and add up the new accounts opened in the last 24 months.
- Manually track credit applications. Many people track their credit applications with a notebook, Google Doc, Excel file or other methods. By tracking each account opening date, you’ll have a good idea of your Chase 5/24 status. But be aware this method is not exact because there may be a delay of when the bank reports your new accounts to the credit bureaus. Because of this delay, your manual tracking may not accurately match Chase’s count.
- Use a digital tool. Apps and websites from Experian, Credit Karma and others allow consumers to quickly review their accounts to view their account opening dates. Although these tools are digital, you still need to manually add up your new accounts.
What contributes to your 5/24 status?
The Chase 5/24 rule can be confusing, so it helps to understand what types of accounts can contribute to your 5/24 count. Here’s a list:
- Opening a new account. New accounts are the most straightforward example of an account contributing to your total. Retail and gas credit cards also count, but prepaid gift cards do not.
- Authorized user cards. Becoming an authorized user on someone else’s credit card does add to your 5/24 count. Some card issuers do not require your Social Security number when issuing your authorized user card. However, they may require you to add it when activating the card, or they may use personally identifying information to link the card to your credit report.
- Certain small business credit cards. Generally, small business credit cards do not count toward your Chase 5/24 status. While the credit inquiry will post to your report, the actual account will not. Capital One and Discover are the exceptions to this rule of thumb because in most cases, they report business credit cards to personal credit reports.
- Closed accounts. All new credit cards applied for and approved within the last 24 months count toward the 5/24 rule, even if you’ve closed the account. The Chase 5/24 rule counts new accounts, not open accounts.
Most small business credit cards do not report to your personal credit report. However, if you have late or missed payments or if you’ve defaulted on your account, those negative marks will show up.
Getting a new loan, like a mortgage, auto loan or student loan will not affect your Chase 5/24 status. But, home equity lines of credit or a personal line of credit may. In general, your 5/24 status primarily counts personal revolving credit accounts.
Is there any way to bypass the 5/24 rule?
Previously, customers could potentially bypass the 5/24 rule through various methods, such as applying through a Chase Private Client banker if you met the minimum requirements to qualify to become a Chase Private Client customer. Most such loopholes have closed, and you are no longer able to bypass 5/24 through these methods. That said, there are a few approaches that might present a chance of success.
- Product change. If you have an existing Chase credit card, you can bypass 5/24 by requesting a product change from your existing card to another. For example, you can ask to upgrade your Chase Sapphire Preferred® Card to a Chase Sapphire Reserve® or downgrade it to a Chase Freedom Unlimited®.
- Exclude authorized user accounts. Customers who are over 5/24 due to authorized user accounts may be able to get around this rule. If you are otherwise under 5/24, you can call the Chase credit department and ask them to remove those authorized user accounts and reconsider your application.
- In-branch preapprovals. Branch employees often have access to preapproved offers for customers based on their customer profiles. These preapproved offers often bypass the 5/24 rule, but you must apply with the bank employee through their link.
- Business Relationship Manager paper applications. Business customers may be able to bypass the 5/24 rule by filling out a paper application for a Chase business card with a Business Relationship Manager.
Other credit card issuers with similar rules
Chase is not the only bank that uses application rules to limit the number of welcome bonuses cardholders can earn. Here are a few rules from major U.S. banks to be aware of before applying for a new credit card.
- American Express “once per lifetime” rule. American Express rules limit customers to one welcome bonus per card type during their lifetime. However, reader feedback suggests that you may qualify for another welcome bonus after five to seven years. The Amex website has an eligibility tool that warns customers if they are not eligible before they complete their application.
- Bank of America 2/3/4 rule. Customers can open two new Bank of America cards in a 30-day period, three within 12 months, and four every two years. This rule does not apply to cards opened at other banks.
- Capital One. While Capital One does not have specific application rules, it does limit cardholders to two personal cards open at a time. Additionally, customers can only be approved for one new card every six months.
- Citi 8/65 rule. Citi customers can get one new credit card every eight days and no more than two new cards within a 65-day timeframe. Business customers must space out their applications at least 90 days apart.
- Wells Fargo six-month rule. This rule limits new cards to once every six months.
Sometimes these rules are unwritten — as is the case with the Chase 5/24 rule — and other times you’ll find the restrictions outlined in the terms provided by an issuer when you apply for a card, as with the Wells Fargo six-month rule.
Card issuers may also limit welcome bonuses to once per family of cards within a limited timeframe. Banks often have multiple versions of the same co-branded or rewards type card. The “once per family” rule limits applicants from hopping between cards that earn the same type of rewards.
For example, Chase has three different Southwest Airlines co-branded cards. Applicants are ineligible to receive a new card if they have a current Southwest personal card open or if they’ve received a welcome bonus from any Southwest personal card in the last 24 months. However, Southwest business credit cards are excluded from this limitation.
Yes, you can get credit cards from other banks, even if you are over 5/24. The 5/24 rule is specific to Chase-issued credit cards. Note, however, that many other banks have their own eligibility rules. You may wish to review the list of similar rules provided above to increase your chances of a successful application.
When you add authorized users to your Chase credit cards, it does not affect your 5/24 status.
However, it will most likely count toward the authorized user’s 5/24 status, and if they apply for a new Chase card on their own could prevent them from getting approved.
No, Chase business cards do not count toward your 5/24 status. However, you must be under 5/24 in order to be approved for most Chase business credit cards.
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