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Navigating the Chase 5/24 Rule: What Every Cardholder Needs to Know

Updated: Jun 14




Navigating the card application process can be similar to playing a strategic game, especially when dealing with large credit card issuers like Chase, who have specific rules in place. Among the most discussed and critical to understand is the Chase 5/24 rule. Within the next five minutes, you will be equipped with the knowledge to effectively navigate this rule, ensuring that you maximize your opportunities to earn valuable credit card rewards.

What is the Chase 5/24 Rule?

The Chase 5/24 rule is an unofficial guideline used by Chase to determine eligibility for most of their credit cards. In simple terms, if you have opened five or more personal credit card accounts across all banks (not just Chase) in the past 24 months, you'll likely be automatically rejected for many new Chase cards. Why does this rule exist? It's part of Chase's strategy to attract customers who are looking for a long-term banking relationship, rather than those who might be trying to take advantage of sign-up bonuses.

How the 5/24 Rule Works

Each credit card application you've submitted and been approved for in the past 24 months typically counts as one "toward" your 5/24 status. This includes not only Chase cards but cards from all other issuers as well. Furthermore, it's not limited to just the cards you own; being an authorized user on someone else's card can count too.

Exceptions and Nuances

- Not all Chase cards are subject to the 5/24 rule, though most rewards cards are.

- Business credit cards from certain issuers often don't count towards your 5/24 status because they don’t report to personal credit bureaus.

- Retail cards may be counted if they are part of the Visa, MasterCard, American Express, or Discover networks.

- The rule seems to apply to your approval odds for a new card, not to your ability to earn bonuses.

The Impact on Your Card Strategy

If you are just getting started with credit cards or looking to apply for new cards, you must keep the 5/24 rule in mind:

Planning Ahead

If you foresee applying for a Chase card in the future, plan your credit card applications accordingly. With Chase’s attractive portfolio of cards, including those with lucrative rewards in travel and dining, it could be worth strategizing your applications to avoid hitting the 5/24 limit too quickly.

Track Your Status

Keep track of your accounts and know where you stand in relation to the rule. You can check your credit report or use personal finance tools to monitor your new accounts.

Prioritize Applications

Given the restriction, it can be wise to prioritize Chase cards before others, especially if you are starting to build your credit card portfolio.

Slow Down on New Accounts

If you are approaching the 5/24 limit, it may be necessary to slow down on applying for new credit cards to remain eligible for upcoming Chase card applications.

Tips for Dealing with the 5/24 Rule

- Stay informed, as rules and banking practices may change, and thus, this unofficial rule might evolve over time.

- Focus on building a good relationship with Chase through existing accounts, which could positively influence your applications in the future.

- If you are denied by Chase due to the 5/24 rule, wait patiently. Your credit history won’t be significantly affected by a hiatus from applying for new cards, and you may become eligible in the future.

The Bigger Picture

The Chase 5/24 rule reminds us that credit card rewards can be highly advantageous, but they require a level of strategic planning and informed decision-making. This rule also underscores the importance of managing credit responsibly; after all, the most valuable reward is a strong and healthy credit score.

By understanding and accounting for the 5/24 rule in your approach to credit cards, you can craft a strategy that aligns with your personal financial goals and lets you maximize the benefits that Chase cards have to offer. As with all financial planning, the key is to stay informed, act with intention, and use your credit wisely.

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