Closer look at Chase’s 5/24 Application Rules
Chase has great welcome bonuses for their credit cards, but they have rules for approving your application. It is really important to know this starting out because:
- It will prevent you from having unnecessary credit inquiries
- Can help guide your credit card strategy
Chase’s 5/24 Rule
You will not be approved for a Chase credit card if you have opened 5 or more personal credit cards in the last 24 months
- Your count of 5 includes any credit cards that show up on your credit report with you as the primary card holder
- Includes store branded cards (ie Macy’s American Express)
How to know and keep track of you 5/24 count
- Open a free Experian account and look at your credit score and credit history
- I like using the Travel Freely app to keep track of my 5/24 count
Credit Card Strategy
- If you have ANY interest in Chase Ultimate Rewards points, start with Chase’s credit cards first
- Space out credit cards applications by at least 90 days, will Bank do not want customers to be opening credit cards just for the welcome bonuses
- Business credit cards typically do not count towards your 5/24 as they do not report to the consumer credit bureaus. Some exceptions are TD, Discover and some Capital One cards.
- If opening business cards is right for you, this can be a good way to stay under 5/24 count
- If you have another adult in your household interested in contributing to earning welcome offers and credit card points, trade off opening cards
Additional Tips
- Chase (and other banks) have additional rules: no more than 2 cards in 30 days will be approved (Chase)
- To keep things simple, do not automatically add authorized users to your credit cards. These show up on your credit history and are confusing for Chase.
- If you get denied for a credit card, make a habit to call the reconsideration department and ask why
- Make sure they are not counting your authorized user credit cards in your 5/24
