If you’re a frequent traveler, you’ve probably heard of the Chase 5/24 rule. This rule can make or break your chances of getting approved for a Chase credit card, so it’s important to understand what it is and how it works.
What is the Chase 5/24 rule?
The Chase 5/24 rule is a policy that Chase uses to evaluate credit card applications. Under this rule, Chase will automatically reject your application if you have opened five or more credit card accounts (from any bank) within the past 24 months. This includes both personal and business credit cards.
It’s important to note that the rule only considers new accounts that have been opened within the past 24 months. If you have opened more than five accounts in the past, but some of them are more than two years old, they won’t count against you under the 5/24 rule.
Example 1: Sarah has opened 4 credit cards in the past 24 months, including one from Chase. She is interested in applying for a new Chase credit card, but because she is still under the 5/24 limit, she is eligible to apply.
Example 2: John has opened 6 credit cards in the past 24 months, but only 2 of them are from Chase. He is interested in applying for a new Chase credit card, but because he has opened more than 5 credit cards in the past 24 months, he is not eligible to apply.
Example 3: Lisa has opened 5 credit cards in the past 24 months, but none of them are from Chase. She is interested in applying for a new Chase credit card, but because she has reached the 5/24 limit, she is not eligible to apply.
The Chase 5/24 rule applies to all personal credit cards, but it does not apply to business credit cards. This means that opening business credit cards will not count towards your 5/24 limit but they are still subject to the rule. That is, if you are OVER 5/24, you most likely will not get approved.
Example 1: Joe has opened 4 personal credit cards in the past 24 months, which means he has not yet exceeded the 5/24 limit. Joe also owns a small business (this does not have to be a majorly lucrative business….selling on Facebook marketplace counts as a business!) Joe applies for the Chase Ink Business Preferred credit card. While Chase will still review Joe’s personal credit history and credit score as part of the application process, the Ink Business Preferred credit card will not count towards his 5/24 limit because it is a business credit card. So even after approval, his number remains 4/24 leaving 1 slot open.
Example 2: Amber has opened 6 personal cards in the past 24 months, which means she is OVER 5/24. If Amber want to open a Chase business credit card, Chase will see that 6 cards (from any bank) have been opened in the last 24 months and her application will most likely be denied. She will either have to open from another bank or wait until one of her cards drops her back to 5/24.
This is why we recommend starting with Chase cards before moving onto other cards like Amex. It doesn’t mean you can’t, or shouldn’t apply for another card before Chase, but it’s something to consider when filling up your 5/24 slots.
It’s also important to keep track of your credit card applications and opening dates if you are interested in applying for a Chase credit card.
Our favorite tool to help us track this is the Travel Freely App! Once you enter your card information, it will track your 5/24 status and let you know when the next slot drops off. Super handy! (See example below:)
Disclaimer: It’s important to note that while business credit cards may not impact your 5/24 limit, they can still impact your personal credit score if you fail to make timely payments or carry high balances. Therefore, it is important to use credit responsibly and manage your credit cards wisely, whether they are personal or business cards.
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