The Chase 5/24 Rule

Whether you are a novice and just starting out with a credit card, or a seasoned expert with multiple cards. Everyone should be aware of the 5/24 9/rule that Chase has when applying for new credit cards. Chase offers a lot of lucrative spend Cards that can earn you a plethora of Chase Ultimate Rewards points on their credit card line up that can offer a lot of value to it’s customers provided that you abide by the 5/24 rule set in place.

(The Chase Trifecta of personal credit cards)

What Is The 5/24 Rule?

To put it simply, Chase will only allow you to apply for any of its personal credit cards if you have opened less than 5 credit cards (this entails credit cards from other banks and credit companies and not limited to Chase cards but does not include business cards, more on that later) within the past 24 months. Hence the Chase 5/24. This is one of the many reasons why I advocate starting out with Chase Credit cards. So if you have opened 5 cards within a two year span, you will be met with a DENIAL letter. However, if you have opened 4 cards within the two year time span, you will be eligible to be approved for a new line of credit with chase.

How do you know if you fall under the 5/24 rule?

If you have no idea when you opened your first, middle or most recent credit card, do not fear! not only offers free credit monitoring, but you can easily use them to check how many accounts you have opened/closed and a timeline of when you opened them, giving you a tool to monitor all of your cards in one place and the best part being, IT’S ALL FREE!

Are You Ready To Apply For A New Credit Card?

If you do fall under the 5/24 rule to apply for any of the Chase credit cards, you should note that mortgages, car loans, personal loans and things similar DO NOT fall under this rule, solely credit cards. Did you recently applied for a credit card and were approved? It may take a few weeks to show up on this report so be mindful of that. If you are at the end of the 24 month span of having a 5th card, it would be wise to wait until the next month after it shows you are now under the 5/24 rule as it takes credit report a little bit to catch up to real time. Another thing, business cards do not count against you in the 5/24 except for Capital One Business Cards.

Are Business Cards Free From the Chase 5/24 Rule?

(The Chase Ink Preferred is one of the most solid business cards out there and has a welcome bonus of 80,000 points when you meet the spend requirement, not to mention a solid return on spend)

Almost all business cards are free from the Chase 5/24 rule. They do not show up on your personal credit report. So your AMEX business cards, Citi business cards, and CHASE business cards won’t show up. However, if you already are at the limit of having 5 cards in the 24 months. And now apply for a CHASE business card like the CHASE Ink Preferred. You will not be eligible. Which by the way, has an 80,000 point sign-up bonus after spending $5000 in the first 3 months. Not to mention, the 3x points on Travel, Shipping, Internet and Phone services. As well as advertising with the internet and social media platforms.  

So if you have a business and are looking for a few business cards, I would recommend applying for those before going over the 5 card limit with any personally issued cards.

Always keep the Chase 5/24 rule in mind when planning out the credit cards you want to apply for.

Bottom Line

Having the right cards and a game plan in using credit cards is always a key factor to playing this game. Sign-up bonuses are great but they are a quick-prize and instant gratification. The real prize comes from getting the right cards to cover your spending and earn a solid return. A return with a good amount of points. Then use the points to take yourself or your friends/family on a trip. One that will create fun experiences for you to always remember.

It’s a good idea to start out with Chase Credit Cards. Especially their Personal Spend line of Cards before getting more from other banks. Like the Chase “Holy Tri-Force” of cards. Just to ensure you have better chances of getting those valuable sign-up bonuses in order to redeem for travel.
Always Triploaf and keep your journey fun and interesting…Let’s Go!!!

Finance disclosure

Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.