Woman Hands Cutting Credit Card

Opening a new credit card can add exciting new possibilities to your financial life, but there are some unseen consequences to opening several cards in a short period of time. All credit card issuers and banks have their own specific policies that guide their lending decisions, and many card issuers are unwilling to approve new credit for customers who have opened several cards over a certain period of time.

One of those issuers is Chase, which is why you need to know about the Chase 5/24 rule if you’re planning to apply for a Chase credit card (or a co-branded Chase card).

What is the Chase 5/24 rule?

First, it’s important to note that the so-called 5/24 rule isn’t an official Chase policy that can be found on the Chase website. Instead, it’s the distillation of thousands of anecdotes from failed credit card applicants, as well as analysis from credit card experts and data analysts. Together, these pieces of information helped thread together the commonalities of rejected Chase credit card applications. As with most rules, there are always exceptions, and even if you haven’t broken the 5/24 rule, you can still be turned down for other reasons.

So, what is the rule exactly? To be approved for any Chase credit card subject to the 5/24 rule (more on that below), you can’t have opened five or more personal credit cards for any bank within the preceding 24 months. The key takeaway here is that four is the hard numerical limit. For new accounts. It’s also important to note that the 5/24 rule is only applicable for Chase card approval, but the criteria for getting approved applies to all accounts across all banks.

If you think you’ll get approved for a Chase card because you’ve opened five accounts in the past two years but you’ve closed one of those accounts, putting you back at four active accounts, think again. The rule only applies to accounts you’ve opened, so it doesn’t matter if you’ve closed the account— it’s the opening part that counts against you.

By the same token, rejected applications don’t get counted toward your 5/24 total since those applications didn’t result in a new account being opened.

Which Chase cards fall under the 5/24 rule?

It’s safe to assume that any Chase personal credit card or co-branded credit card is subject to the 5/24 rule, which includes the following Chase cards:

  • AARP Credit Card From Chase
  • Aer Lingus Visa Signature Credit Card
  • Amazon Prime Rewards Visa Signature Card
  • British Airways Visa Signature Card
  • Chase Freedom
  • Chase Freedom Unlimited
  • Chase Sapphire Preferred Card
  • Chase Sapphire Reserve
  • Chase Slate
  • Disney Premier Visa Card
  • Disney Visa Card
  • The World Of Hyatt Credit Card
  • Iberia Visa Signature Credit Card
  • IHG Rewards Club Premier Credit Card
  • IHG Rewards Club Traveler Credit Card
  • Ink Business Cash Credit Card
  • Ink Business Preferred Credit Card
  • Marriott Bonvoy Boundless Credit Card
  • Southwest Rapid Rewards Plus Credit Card
  • Southwest Rapid Rewards Premier Credit Card
  • Southwest Rapid Rewards Premier Business Credit Card
  • Southwest Rapid Rewards Priority Credit Card
  • Starbucks Rewards Visa Card
  • United Club Infinite Card
  • United Club Business Card
  • United Explorer Card

In addition to these cards, it’s crucial to remember that simply being under the 5/24 limit doesn’t mean your application for a Chase credit card will be approved. Other variables influence Chase’s decision to reject or approve your application, and might include your credit scores, household income, debt to income ratio and other financial behavior indicators.

Also, if you apply for too many Chase cards over too short a time period you can still be rejected and your accounts can even be shut down. It’s in your best interest to wait several months before applying for another Chase card if you’ve recently opened a Chase account.

How to calculate your 5/24 score

If you want to apply for a Chase card but you’re unsure of the number of accounts you’ve opened over the past two years, it’s a good idea to get one of the three free credit reports you’re entitled to receive each year.

When you look at your reports, identify how many credit card accounts you’ve opened over the last 24 months. If you find you’ve opened five or more credit cards, you’ll want to wait two years before applying for a Chase card to give yourself the best chance of approval.

As a note, your 5/24 status is active until the first day of the 25th month after your fifth account was activated. Here’s a real-life scenario to illustrate this point a little more clearly: if your fifth most recently opened account was opened on November 19, 2018, you shouldn’t apply for a new Chase card until December 1, 2020.

Exceptions to the 5/24 rule

There are exceptions to almost every rule, and the Chase 5/24 rule is no different. For example, Chase business cards do not count toward your 5/24 score. Other small business credit cards don’t typically count toward your 5/24 limit either, unless it’s from TD Bank, Discover or Capital One.

Auto loans, mortgages and student loans don’t count toward your 5/24 limit either.

Conclusion: Apply for new credit strategically

Although sign-up bonuses can act as a siren call, it’s in your best interest to avoid applying for too many credit cards over a short span of time, especially if you want to apply for a Chase credit card. With that said, if you’re under the 5/24 rule, ensure that other parts of your financial standing, like your credit scores and debts, are up to snuff so you can stack the odds of approval in your favor.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but card terms and conditions may change at any time. This site may be compensated through the credit card issuer Affiliate Program.