Credit card issuers have different rules for how often you can earn the signup bonus on new credit cards. For Chase, the main rule for limiting credit card churning is the 5/24 rule. Here’s what you need to know about the Chase 5/24 rule if you plan on opening credit cards to earn points and miles.
What is the 5/24 Rule?
The Chase 5/24 rule affects anyone who has opened five or more credit cards from any bank in the past 24 months. If so, you will not be approved any new personal or business cards from Chase.
The 5/24 rule is not about the number of hard inquiries on your credit report but rather the actual number of credit cards you have opened in the past two years that show up on your credit report. Most business cards are not reported on your credit report, so it’s likely that business cards opened in the past 24 months will not contribute to your 5/24 count. One exception is business cards from Capital One which are reported on your credit report.
What Credit Cards Are Impacted by the 5/24 Rule?
All personal and business credit cards from Chase are impacted by the 5/24 rule. As mentioned above, business cards typically do not count against your 5/24 status. For this reason, I recommend signing up for Chase business cards first. You need to be under 5/24 to get approved for them, but they won’t negatively impact your 5/24 count.
Keeping Track of Your 5/24 Status
It’s a good idea to sign up for a free credit tracker to make sure your accounts are in good standing and there are no errors on your report. Credit Karma provides weekly TransUnion and Equifax updates. You can also check Experian for free through a separate service. Since all credit cards should appear on the reports by all three bureaus, you can look at any of the three to determine your 5/24 count. This is based on the date the card was opened.
Being an Authorized User Counts Too
If you are listed as an authorized user on someone else’s credit card, this WILL count toward your 5/24 count. The best advice is to remove yourself as an authorized user when possible. Doctor of Credit wrote about how to remove authorized user accounts from your credit report.
How Can I Avoid 5/24?
In general, you usually can’t avoid the 5/24 rule. In the past, people including myself have had success with Chase “selected for you offers”. If the application shows a fixed APR, then it’s possible you will be approved despite being over 5/24. Rules change quickly when it comes to credit card churning so there is no guarantee this will work.
Final Thoughts
Chase’s 5/24 rule is unfortunate but not the end of the world even if it seems that way at first! When getting started with credit card churning, I recommend applying for Chase credit cards first since they have some of the best signup bonuses. Also, Chase Ultimate Rewards points can prove to be quite valuable. Here’s my general strategy on what cards to open first.
What are your strategies when it comes to applying for credit cards through Chase?
