Demystifying Chase's 5/24 Rule: What You Need to Know

In the world of credit cards, understanding the rules and regulations set forth by issuers is crucial for maximizing rewards and getting free vacations. Among the various policies established by credit card companies, one that often perplexes consumers is Chase's infamous "5/24 rule." Let's delve into what this rule entails and how it can impact your credit card application strategy.

What is the 5/24 Rule?

Chase's 5/24 rule is a policy that affects your eligibility for a new Chase card based on the number of credit cards you've opened in a 24-month period. Essentially, if you have opened five or more new card accounts from any issuer within the previous two years, Chase is likely to deny your application for most of their credit cards.

How Does 5/24 rule Work?

The rule is straightforward in its application but can be tricky to navigate if you're not aware of its implications. Here's a breakdown:

1. Counting New Accounts:

Chase counts all new credit card accounts opened in the past 24 months, regardless of the issuer. This includes not only cards issued by banks but also store credit cards and any authorized user account. 

2. Threshold Limit:

If you've opened five or more credit card accounts within the last two years, you'll likely be ineligible for many of Chase's most popular credit cards. This means you won't be approved for cards like the Chase Sapphire Preferred, Chase Sapphire Reserve, Chase World of Hyatt credit card, etc. Chase applications for new  Co-branded cards are also subject to the 5/24 rule. Any new personal credit cards will count regardless of the credit card issuer or financial institution.

3. Strategies to Navigate the 5/24 Rule

While the 5/24 rule might seem restrictive, there are strategies you can employ to maximize your chances of being approved for Chase credit cards:

Prioritize Chase Cards: If you have your eye on a Chase credit card, make it a priority in your application strategy. Apply for Chase cards before reaching the five-new-cards threshold to increase your chances of approval. It is a good idea to keep track of the open dates of new personal cards, 

Space Out Applications: If you're nearing the five-new-cards limit, consider spacing out your applications to stay below the threshold. Waiting a few months between applications can increase your chances of approval for Chase cards.

Chase Business Card: Business cards do not count toward the 5/24 rule. Chase business cards offer lucrative welcome bonuses. You can earn sign-up bonuses for Chase Ultimate Rewards (depending on the card, be sure to read the details of the card), hotel chain points, or miles. 

Chase's 5/24 rule is a significant factor to consider when planning your travel hacking theory. By understanding how the rule works and implementing strategic approaches, you can optimize your chances of being approved for a new Chase credit card while maximizing your rewards potential.

Remember, while the 5/24 rule is essential, it's just one piece of the puzzle. Always consider your overall financial health, credit score, and spending habits before applying for new credit cards. The best way to monitor your credit history is by checking your free credit report regularly. Many credit card issuers offer a free copy of your credit report. Those with excellent credit keep track of due dates, debt levels, and new card applications. This will ensure you will be able to get the most attractive rewards credit cards.  With careful planning and informed decision-making, you can navigate the world of travel reward credit cards with confidence. To learn more about our travel hacking strategies check out our post "Unlock the World: Mastering the Art of Traveling with Points."