The Chase “5/24” Rule Is Now Official

For a while now Chase has had a 5/24 rule, which basically means that they won’t approve you for a card if you’ve opened more than five cards in the past 24 months.

Up until now this has been a mostly unpublished rule, in the sense that it wasn’t written anywhere, but rather anecdotally matched peoples’ experiences.

The rule started off slow on just some cards, and over time expanded to other cards. Nowadays it applies to all “native” Chase cards and many co-brand cards as well, though there are still some exceptions.

This rule doesn’t impact a vast majority of consumers, though ultimately is an effort to prevent people from applying for cards just for the bonuses. It’s something that all card issuers are trying to crack down on nowadays.

Anyway, it looks like for the first time ever, Chase has official verbiage confirming the 5/24 rule. The Chase Sapphire Reserve application has the following footnote:

You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months

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Those are some pretty absolute words they’re using, so it’s at least nice to see the rule in writing. I’m happy they’re being transparent about this rule, as I’m sure there are plenty of people who have been denied for a Chase card without knowing of this restriction.

As of now the Sapphire Reserve is the only card I’ve seen with the verbiage, though I suspect it will be expanded to other cards soon as well. They probably added it to this card first given how popular it is at the moment.

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Do keep in mind that the 5/24 rule isn’t being enforced quite as strictly as the terms state. While the above is generally going to be true for online applications, many report having been pre-approved for the card in a Chase branch, and otherwise there seem to be some exceptions for Chase Private Client customers.

Lastly, keep in mind that the rule doesn’t seem to be quite as straightforward as just having opened “5 or more bank cards.” For example, some report that being added as an authorized user does count towards this limit, while others report that opening many non-Chase business cards doesn’t count towards that limit.

(Tip of the hat to Miles To Memories)


Non-Affiliate Product Disclaimer: The information for the Chase Sapphire Reserve has been collected independently by One Mile At A Time. The card details on this page have not been reviewed or provided by the card issuer.

Comments

  1. Lucky – do you have a list of the Chase cards that 5/24 doesn’t apply to? Would be helpful for the ordering of applications for some people.

  2. The one thing that kills me is I have the CSP,AMEX Plat, Citi Prestige and wanted to consolidate those into this one card. It seems they are going after the higher income credit card user and for many of us they are missing out on due to the 5/24

  3. My understanding of 5/24 was always that Chase included all applications (i.e. included rejected applications in addition to approved ones) in the “5” part of the rule. This statement doesn’t outright contradict that, but the wording suggests otherwise as I read it.

    Does anyone have experience applying for chase card with 3-4 “approved” applications but 5+ total applications in the last 24 months? Asking for a friend 🙂

  4. Does this include, for example, a Wells Fargo card that was opened by Mattress Firm when I purchased a mattress (it’s already paid off and closed). Or, say, a Gap card, which I think is synchrony bank?

  5. @Evan – it’s cards opened, not applications. In general, you could be declined by any bank for having too many inquires but this specific rule and the denial of “too many cards opened in 2 years” is opened, not applied for.

  6. @Evan – your applications which resulted in a rejection would (usually) only show up as a hard inquiry on the credit bureau report that the rejecting bank used. Chase also (usually) only pulls a single bureau report to assess an application, so they wouldn’t necessarily see every hard pull – only those from the bureau they pulled from as well. Only applications that actually convert to accounts will report to all three bureaus and are the probable data point that Chase uses for the 5/24. I have 6/24 with hard pulls (3 x EX, 2x TU, 1x EQ) and 3/24 on accounts. No issues getting approved for the CSR – Chase pulled EX in my case – although I had to shift some credit around.

  7. I guess they did this to reduce the amount work from their team spending time in rejecting applications as well as to reduce the number of people calling their reconsideration lines trying to find a way to be approved. Now it is very clear and you should not waste your time applying if you don’t fit in the rules (even if they are stupid rules as I see them).

  8. @Lucky:
    One of the things about the 5/24 rule that was unclear before was whether that meant (as you state in the first sentence in your post)
    “” if you’ve opened more than five cards in the past 24 months.””
    or
    5 or more cards as Chase now states in the application.
    “You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months”

    There’s a difference there and now that the meaning has been clarified, I suggest we all use the “5 or more” phrasing so there is no more ambiguity.
    Thanks
    Neil

  9. @Joe if you have high enough spend it may be worth considering a product conversion on your CSP. You miss out on the sign up bonus, but still get everything else and it would allow you to consolidate cards. Then if you’re ever out of 5/24 in the future you could product convert to a Freedom or Freedom Unlimited and apply for a new Reserve.

  10. They don’t even know how to count, either that, or the rules are far more strict for non-bloggers than they’re going to tell you. I have two Chase cards, they solicited me for a third the other day, and then turned me down with the excuse of too many cards opened in the last two years. I opened ONE Chase in the last 24 months. One. If you count the one they asked me to apply for, OK, you could call that two. The other one is the Chase Freedom card I’ve had for donkey’s years. I’m returning them both this week after I finish cashing my rewards since they clearly don’t want my business. Idiots. I did check my credit record to see if there were any reports by anybody else and it was all clear. They’re just incompetent. It isn’t like I came to them or that I’m still in this hobby. Haven’t been for years… just follow other people’s adventures for a giggle.

  11. It’s beyond just Chase cards, I think I have 2 in the past 24 months but received a letter explaining why I was denied…too many cards based on Experian. Very misleading and strange that they’d want to drive away potential customers. I understand if Chase feels that Chase has extended too much credit to an applicant but to turn away a customer just because they applied for other banks’ cards is strange. Chase must have been burned a lot lately by non-payers…

  12. @Robert

    It doesn’t seem to be about extending too much credit or charge-off incidents/amounts, but rather about Chase deciding (rightly or wrongly) that people who open >5 accounts in 24 months are people who are opening and closing accounts for large sign up bonuses. That’s what they are trying to curb.

  13. They should offer people the option to apply for a card without a sign up bonus if they really want the card. They are missing out on customers by completely shutting out people who want to have Freedom, CSP and CSR cards for the actual card benefits. Let those people in, just without the bonus!

  14. Got rejected in the bank trying to apply in person. I was not pre-approved. DrofCredit is also reporting that they have new pre-approved.

    Will probably try again to see if I am pre-approved. I won’t apply unless I am pre-approved though.

  15. I, too, fell victim to the 5/24 rule, but — interestingly — not right away. After applying online, I was routed to a screen that told me my application needed “further review” and I would receive an answer via U.S. Mail . . . I knew then that I’d probably be declined, but was hoping I had a slight chance. Nope! The letter I received read (in part) that although my application was denied, it was specifically due to the “5/24 rule.”

    Of course the irony here is that, arriving in the mail the very same day, was a pre-approved application for a Chase SLATE card . . . WTF?

  16. In the meantime I just opened my 5th Barclays card in 2 months on top of the 10 there I opened and closed there in less than a year. There’s plenty of fish in the sea.

    I cycle through the Jet Blues, the Hawaiians, Frontier, Wyndham and Choice. Not even started their Barclays card yet. All TU hits too which “don’t count”.

  17. I can’t seem to get a clear answer and was hoping someone would here would know. I am at 6/24 if you include the ink plus and kohls.

    My question is, does chase count a kohls charge (it’s not a bank card) but it shows on my credit report & the ink plus (doesn’t show on my report) but chase can obviously see that I have it.

    2 of my 24 are up in November but I am heading to vegas in October and would love to get the reserve for hotel/dining expenses. I would hate to get denined now when I know it can qualify in November.

    If it matters, I have quite a few chase cards
    Freedom
    Freedom
    Ink plus
    Southwest (I don’t remember off the top my head which one)
    Plain jane sapphire (downgraded from preferred, when they took away a lot of the good benefits)

  18. Chase 5/24 rule: After being denied for the CSR (I was at 5/24), I applied online for the CSP and was approved. I called the Chase reconsideration line to ask why I was approved for one but not the other and was told the 5/24 rule only applies to the following five Chase cards: Reserve, Freedom, Slate, Southwest, United. Hope this is helpful.

  19. I myself ran into the 5/24 rule with Chase the other day while applying for the CSR card. Like a lot of people my credit score is over 800 points and I have been with Chase for over 20 years but they would not budge.Through some due diligence and research and talking to Chase 3 separate times I found out that department store cards do not count against your 5 card limit. So long as they are not Co-branded like a Visa or Mastercard or American Express etc. I had 5 new cards in the last 24 months but one of them was a card for a Nautilus exercise machine. It was Syncrony Bank or something like that. It was a credit card but could only be used for specific purposes like a department store card. After explaining that to the Chase representative he put me on hold a few times and ultimately came back and told me congratulations on getting my card. So in summary it can be any 5 cards that are Visa, Mastercard, American Express etc. They do not have to be Chase cards to count against you.

  20. Does anyone know if cards that switched providers like Costco and Fidelity count as new accounts under this policy? I got rejected for the Sapphire Reserve because of the rule, and I don’t really think I’ve opened that many accounts. I did do something stupid recently, letting the CS person at BJ’s open a MC for me when I joined because she was being nice to me and I figured “what the heck”. I’ll have to remember not to do that in the future!

  21. I just pulled the trigger and have 4 major bank cards and 1 store card in the past 2 years. Officially it should be a denial as the store card appears under credit cards. Chase double pulled EX and EQ for me as usual (same for Freedom, Marriott and CSP) Now I will wait to see what will happen with 4 major bank cards and 1 store card as I am not sure if the store card really counts. Found conflicting information. We will see. Fico is above 780 on EX and EQ.

  22. I was wondering if the chase 24/7 rule has been cancelled? Any idea? Or was I just lucky!!
    I just got a sapphire preferred approved with a 18k limit and I have way more than 5 cards in the last 24 months or less.
    Feeling Super Excited as I did not expect the approval!!!

  23. Any idea how literal they are on 5/24? I have my 5th card that would follow off on December 5th, 2016 and would leave me at 4/24. I wish to apply for the Chase Sapphire Reserved, but unsure if I can do it on 12/6/16 or would need to wait until Jan 1. Any help would be great.

  24. Hey everyone. I just called and wanted the new Biz Ink Card for 80K, just came out. The biz lady said that she didn’t know what the 5/24 rule was? I called before I applied because I am def over the limit. So after reading the info and talking to Chase directly, I applied. Got rejected and called their Biz lending team, lady wouldn’t help me so I called the manager and he said it was IMPOSSIBLE for me to get the card. Very disappointed in Chase. Their site says nothing about the 5/24 rule, offer details and their own REPS said it wasn’t applied. Yet I got declined. Craziness Chase.

  25. @Tim I just got rejected for the Marriott due to 5/24 and was thinking of singing up for the Ink Preferred for my wife’s business because then it wouldn’t hurt her ability to get CSR later next year, but now that you gave your data point, I guess I will forgo the 80K at this point.

  26. Just got approved for a business Marriott card on January 4th.

    I’m definitely over 5 cards in the past 24 months so the information on the Marriott Business card is still accurate.

  27. Amex canceled 2 products I held (JetBlue, Amex Blue). The Amex Blue product automatically transferred into the Amex Everyday Card but since it was a new acct. number it was accompanied by a fresh “account open” date. This was enough to trigger a 5/24 exclusion. I also replaced JetBlue Card. I would have had no need to replace JetBlue Card had their relationship with Amex remained. Chase lending reconsideration dept. lacks empowered flexibility to override a poorly applied rule which results in their potential loss of good customers.
    In managing a family business with over 9 well used Chase cards, the only message I can provide to Chase is that I cannot send business and profit to them in good conscience when there are so many other financial institutions that will gladly offer fine benefits in exchange for our high FICO, high-spend card business.
    Hopefully it is a message Chase will listen to.

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