If you’ve been in the credit card game for a little bit at some points you have probably come across what is referred to as the 5/24 rule. Technically there is no public documentation to prove this rule to be true, but people that collect points and miles know that’s important to be aware of.
What is it?
The gist is that if you have opened 5 or more new credit cards in the past 24 months (from any bank), you will not be approved for a new credit card from Chase. Simple enough.
Cycling through credit cards (RESPONSIBLY OF COURSE!!) can be a great way to take advantage of sign-up bonuses that get you points to fly around the world. However, there are a few things you should know about the 5/24 rule:
- The rule affects applications for both Chase personal and small business credit cards (including the Chase Sapphire Preferred and Ink Business Preferred).
- The number of credit cards opened in the last 24 months is a rolling count. If, for instance, your 5th newest card was opened 23 months ago, you’ll be eligible again in just one month.
- Small business credit cards do not count towards your 5 cards.
- If you’re a Chase Private Client – someone with over $250,000 in assets with Chase Bank – you may be exempt from this rule.
- If you are an authorized user of another card (i.e. your spouse’s card), it will count towards your 5/24 count
- Obviously you could still be declined for a card for any reason, even if you’re under the 5 card limit.
Game planning around 5/24
If you are new to travel credit cards and/or haven’t opened any new card accounts in the last two years, it’s a good idea to prioritize a card like the Chase Sapphire Preferred or the Ink Business Preferred to collect Chase Ultimate Rewards. After that, think about the other Chase co-branded cards like the Southwest or United cards.
Keep track of the application dates of all your credit cards! In the event you’ve opened a few cards and don’t remember what dates you applied on you can request any one of your annual credit reports for free to see when you opened them.
Keep in Mind
It’s also important to note that each individual card issuing bank has it’s own rules similar to 5/24 which limit how often you can get a signup bonus.
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