Credit card 101: all about Chase 5/24 rule

Since May 2015, Chase applied so-called ‘5/24 rule’ to its credit card application: if you have 5 or more new credit card accounts in the past 24 months, you will get rejected directly, no matter how good your credit score is.

  • Details about 5/24 rule.

In the 5/24 policy, the new accounts include ALL the credit cards appeared on your credit report in the past 24 months, which means that credit cards or charge card issued by other banks are included.
Fortunately, the new account that didn’t be added to your credit report does not count. At the situation, Chase can’t see the unreported new card even if it pulls your credit report. For example, American express new accounts are usually reported to credit bureaus after 2 statements. So if you keep more than 5 new cards while those extra cards haven’t been reported, you should hurry up and apply. But this doesn’t work for the new cards approved by Chase itself. Remember, the closed cards that opened within 24 months are also counted.
A ridiculous thing is that Authorized user counts toward the 5 new accounts limit. Sometimes adding an authorized user does not need SSN, but the credit bureau is still able to locate you based on the name, birthday and other information, and add the information of an authorized user to your credit report. So if someone has added you as an authorized user, remember to check your credit report before applying for a new card of Chase. If you get a rejection, when calling reconsider line, you can ask the Customer Service Representative to drop the accounts which you only are an authorized user when counting the number.

  • How to bypass the 5/24 rule?

There are three methods now can bypass 5/24 rule:
In branch pre-approved offer can bypass the 5/24 rule. Note that online pre-approvals don’t work.
Online bank “Your offers” can bypass the 5/24 rule.
A mail offer with an RSVP code can bypass the 5/24 rule.
Chase did NOT apply the 5/24 rule to all of its credit cards. Following are the cards affected by 5/24 rule

  • Cards affected by 5/24 rule.

•Chase Slate
•Chase Freedom
•Chase Freedom Unlimited
•Chase Sapphire Preferred
•Chase Sapphire Reserve
•Chase Marriott
•Chase UA Explorer
•Chase UA Club
•Chase Southwest Plus
•Chase Southwest Premier