In the world of credit cards and award travel, there are several rules and regulations that you must be aware of during your journey. One of the most important rules that often confuse applicants is the 5/24 rule. Understanding this rule is vital for anyone who wants to optimize their credit card strategy and maximize their rewards. Chase offers some of the best rewards in the industry, so it’s important to be strategic while applying for every card so you don’t unintentionally make yourself ineligible for their cards for two years. In this guide, we will explore what the 5/24 rule is, how it works, and effective strategies to navigate it.
What is the 5/24 Rule?
The 5/24 rule is a policy enforced by Chase. It implies that if you have opened five or more credit card accounts across ALL issuers in the past 24 months, you may not be eligible for certain Chase credit cards. Some applicants get confused and think that this rule applies only to Chase-issued cards. However, it includes any personal and some business cards (that report to your personal credit), including cards issued by Capital One, Citi Bank, and US Bank, among others.
This rule applies not only to Chase-branded cards but also to co-branded cards issued by Chase, such as those offered in partnership with airlines and hotels.
Why Does the 5/24 Rule Matter?
Understanding the 5/24 rule is essential for anyone who wants to maximize their credit card rewards. Since many of the best reward travel credit cards are issued by Chase, being subject to the 5/24 rule can significantly limit your options. By carefully managing your credit card applications and staying below the 5/24 threshold, you can ensure that you remain eligible for Chase’s most valuable cards and continue to reap their benefits.
Exceptions to the Rule:
There have been exceptions to the rule, including cases like mine and P2’s. I’ve been approved for 5 Inks over 5/24, and so has P2. However, it’s important to note that we both have a banking relationship with Chase on the consumer and business side. This relationship may have influenced the decision to approve us for these cards despite exceeding the 5/24 limit. While exceptions do exist, maintaining a strong banking relationship with Chase could potentially improve your chances of approval for their credit cards, even if you’re over the 5/24 threshold.
To check your 5/24 status, you have multiple options:
- Credit Monitoring Apps: Utilize apps like Credit Karma, which offer free access to your credit score and report. These apps can provide insights into your credit card accounts and help you track your 5/24 status.
- Free Credit Reports from Banks:Â Many banks offer free credit reports to their customers. You can check with your bank to see if they provide this service and access your credit report through their online banking portal.
- AnnualCreditReport.com: Request a free copy of your credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months through AnnualCreditReport.com. Reviewing your credit reports from these bureaus will give you a comprehensive overview of your credit card accounts and help you determine your 5/24 status.
Strategies for Navigating the 5/24 Rule:
- Prioritize Chase Cards: If you’re interested in applying for Chase credit cards, make sure to prioritize them over cards issued by other banks. Since Chase’s cards tend to offer generous rewards and perks, it’s worth focusing on them first to ensure you don’t miss out due to the 5/24 rule.
- Consider Alternative Options: If you are not eligible for Chase credit cards because of the 5/24 rule, you can consider applying for non-Chase business cards from other issuers until you meet the rule’s criteria.If you are unsure about whether you qualify for small business credit cards, don’t worry! You can fill out the contact form below, and we will be happy to assist you. Even if you are a sole proprietor with a side hustle, such as consulting or reselling, you may still be eligible for small business credit cards.
Conclusion:
Chase has some of the best rewards in the industry, making strategic credit card choices essential. Understanding the 5/24 rule is key to maximizing your reward potential. Whether you’re an experienced credit card enthusiast or new to the game, being mindful of the 5/24 rule and implementing effective strategies can help you make informed decisions and unlock the full potential of your credit card portfolio. If you have questions or need help with your credit card strategy, we offer free credit card consultations tailored to your needs. Remember on your Award Travel journey, we’re here for the long game, so strategy is key.
Disclaimer: The information provided in this post is for educational purposes only and should not be construed as financial advice. Always conduct your own research and consult with a qualified financial advisor before making any financial decisions.
2 Responses
Are there any good travel rewards credit cards that do not utilize the 5/24 rule for approval? I have excellent credit but my husband added me as an authorized user to some of his accounts, which shows up as recently opened accounts on my credit.
Yes, you have many options that don’t have this requirement. However, you can also still qualify if you are an AU, it may require them manually overriding it but the rule is for the cards you are a primary holder of. AU wouldn’t count. You can also complete our Free Credit Card consultation form here for alternative options as well