Chase was one of the first major credit card issuers who enforced rules to prevent gamers from applying to its cards. The first reports of rejected applications, because of too many opened accounts, started to emerge in 2015. Later, it became obvious, that “too many” has a number. Chase 5/24 rule means that Chase will not approve you for its most lucrative cards if you have five or more opened accounts within last 24 months.
Credit cards affected by Chase 5/24 rule
The bad news is that all UR-earning credit cards are affected by this rule. You won’t be able to get Chase Freedom, Freedom Unlimited, Sapphire Preferred, Sapphire Reserve, Ink Business Cash and Ink Business Preferred. Moreover, the new One Sapphire Rule state that you can’t get more than one Sapphire card, even if you are under 5/24.
The following cobranded cards are also subject to Chase 5/24 rule:
Airline credit cards: Chase United MileagePlus Explorer, Chase United MileagePlus Explorer Business, Chase United MileagePlus Club, Chase United MileagePlus Club Business, Chase United TravelBank Card, Chase Southwest Rapid Rewards Premier, Chase Southwest Rapid Rewards Premier Business and Chase Southwest Rapid Rewards Plus
Hotel credit cards: Chase Marriott Rewards Premier
Chase cards not affected by 5/24 rule
The good thing is that there is still a number of cards, which you may consider applying to:
Airline credit cards: Chase British Airways Visa Signature
Hotel credit cards: Chase Hyatt, Chase IHG Rewards Club Select, Chase Ritz-Carlton Rewards and Chase Marriott Rewards Premier Business
Other credit cards: Chase Disney, Chase Disney Premier, Chase AARP, Chase Amazon and Chase Amazon Prime
British Airways card may provide great values for those, who can utilize those Avios, but I’d like to bring your attention to hotel cards here.
In my opinion, Chase Hyatt and IHG Rewards Club Select cards can provide you great value even if you keep them for more than a year since those anniversary night certificates are usually worth more than the annual fee. You can benefit even more if utilizing 2-player mode.
Despite hefty annual fee, which is not waived for the first year ($450), Ritz-Carlton card may fit your collection well, especially if you can ask to be matched for the 3-night signup bonus. Moreover, it is one of the most beautiful and heaviest cards on the market. There is also a trick, which allows you to have annual fee waived by reducing your credit line to $1,000, but personally, I wouldn’t do it, since I value my relationship with Chase.
Chase Marriott Rewards Premier Business is also worth mentioning since it is the only business card from Chase, which is not affected by 5/24 rule.
How to Get Around Chase 5/24 rule?
There is a number of ways to get around this rule:
If you’re an authorized user
If you are an authorized user on a number of cards, you can try to remove them from your credit reports before submitting an application. Though different banks have different rules, usually it can be done quite easily with Chase AUs, and rather difficult with AMEX cards. Call to the bank and ask to remove AU card from your report. Note, that it takes a few weeks to completely process your request.
Moreover, if you’re exactly at 5/24 and at least one of the cards is an AU card, call reconsideration line and appeal your case. In most cases, you will be approved by credit card analyst after a short talk.
If you have business cards
Not all business credit cards are reported on your personal credit report, and the card is not shown on personal report, it doesn’t count toward 5/24 limit. Chase, AMEX, Bank of America, Citi, US Bank and Wells Fargo are among major issuers who DO NOT report business credit cards to personal reports.
If you have “Selected For You Offers”
Login to your online account and click Your Offers link to see if you have any credit card offers checked by a green mark. These offers bypass 5/24 rule. If you see anything like that, consider applying as soon as possible. I’ve missed an opportunity to jump on a targeted CSP and Freedom Unlimited offers because of hesitation. They were on my account for about 2 weeks and then just gone as unexpectedly as they appeared.
If you can check in branch
Ask your banker to check if you qualify for any pre-approved offers. These offers are known to bypass 5/24. That’s how I was able to get Chase Sapphire Reserve while being at about 9/24
If you are at 4/24
It would be wise to apply for 2 affected cards at the same day if you’re 4/24. Make sure to call reconsideration immediately if one of the applications goes pending. This tricks helps you not only to get an additional card, but can be also used to bypass One Sapphire rule. Moreover, Chase combines hardpulls, so you will have only one credit inquiry on your report.
Best strategies for those under 5/24
Before applying for Chase cards, decide if you need a Southwest Companion Pass.
If you’re trying to get Southwest Companion Pass.
I would apply for Ink Preferred as my first Chase card. First, it is a business card, so that it doesn’t count towards 5/24. Second, you can get the annual fee waived by applying in a branch. In fact, you should talk to Business Relation Manager to check if you can get 100k offer. That’s a decent UR earning card with a great signup bonus.
Then I would try to apply for both Southwest Premier and Southwest Plus on the same day to combine hardpulls. Two of these cards should be enough to secure a companion pass for you. Try to apply for them somewhere in November/December, so that you can get almost 2 years of CP.
My next cards would be Chase Sapphire Preferred and Chase Sapphire Reserve. I’d still try to apply at the same day to combine hardpulls and get around one sapphire rule. Then I’d get either Marriott or United Explorer card (depending on which I need the most).
Such strategy would help to get Southwest Companion Pass as well as Chase best personal cards.
If you’re not trying to get Companion Pass
Chase Ink Preferred would still be my first card. Then, I’d try to get CSR and CSP. And get Mariott/United or Southwest cards next depending on my preferences.
I wouldn’t apply for Freedom or Freedom Unlimited (unless pre-approved) since even Southwest cards will provide you with a better value. Even if you don’t fly Southwest you can redeem those points at Amazon for 1 cent per point, meaning that you’ll be able to get at least 400-600 dollars just from the signup bonus.
You will still be able to get Freedom or Freedom Unlimited later by downgrading other cards with annual fees.