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What Chase’s 5/24 Rule Is and How to Navigate it Best


Recently there was a rash of application denials among applicants with excellent scores who applied for the Chase Bank’s Ultimate Rewards cards. This was an unprecedented event and it took place in mid-2015. When applicants asked why they were declined, the Chase bank agents informed them that they didn’t meet a criterion for approval because they had opened more new card accounts within a twenty-four-month period than the company allowed for their eligibility criteria. Even those who made all their payments on time and had impeccable payment histories were denied and there was nothing that could be done other than wait for enough time to elapse.

The 5/24 rule defined

This rule is a part of the bank’s eligibility criteria for establishing creditworthiness. Is an applicant has opened five or more accounts for credit cards in a period of 24 months, they are not eligible to be approved for several of the various Chase credit cards. This means accounts with all banks throughout the nation. This rule also applies to several Chase co-branded cards. It started in 2015 and remains in force today.

Some False results

The policies that the Chase bank corporation follows rely on crowdsourced information and some information that they rely upon turns out to be false. There isn’t really an exact science to their formulation. It is an assumption based on information supplied by Chase, that account openings are a main reason for the rule, but it doesn’t fully explain why some gamers who gather copious amounts of related reward points had their accounts closed because they applied for a type of card that wouldn’t have rendered them ineligible because of the Rule. These gamers forfeited their rewards points and they didn’t do anything wrong.

What does all this mean?

What this means is that it’s time for everyone to start paying close attention to all applications that they submit for opening credit cards. This goes for Chase and all other types of cards. If you want to be approved for the Chase Ultimate rewards card, you must not open any new accounts for 24 months before you apply.

Cards that are subjected to 5/24 rule

There are only certain kinds of Chase credit cards that require compliance with the rule. These include; Chase Slate, the Sapphire preferred and Reserve, the Chase Freedom and Freedom Unlimited, Starbucks Rewards Visa Card, Marriot Rewards Premiere and Plus cards, and Ink Business Cash and Business Preferred Cards. Several other under Southwest brand5/24 are Rapid rewards Plus, the Premier version of the card, and Rapid premier rewards Business Cards are under the rule. Finally, several more under United branding are also 5/24 subjects and these include United Mileage Plus Club, United Mileage Plus Club Business, United MileagePlus Explorer and United Mileage Plus Explorer Business Cards.

Caution regarding non-5/24 cards

Although these cards identified above do not fall under the rule, you must still use caution if you want to qualify for them. Applying for too many cards in a short period of time can cause a lot of problems. There isn’t really a definition of how many applications are too many. You shouldn’t apply for one card within six months of having applied for another, but if you’re below the established threshold, technically you can apply for another account within 3 to 4 months. A flurry of activity outside of the rule can result in a Chase shutdown, as experienced by the gamers.

Other factors

5/24 is not the only factor that influences your eligibility for the Chase credit cards or any others for that matter. Approval rests upon several other factors including debt to income ratio, your credit rating, employment status and so forth.

How the score is calculated

The best way to calculate your score is to look at your most recent credit report. This will help you see how many accounts you are listed as having open and when those accounts were opened. You can also check your record for accuracy because, on occasion, there is incorrect information listed that needs to be updated. Chase bank is only interested when accounts were opened so closing an account or two won’t change your score. Keeping on top of your credit card application habits is important so you always know where you stand

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