Which types of personal accounts contribute to your 5/24 status?
In a nutshell, any revolving lines of credit on your credit report will count. It doesn’t matter whether the account is open or closed at the time you apply with Chase; what matters is that the account was opened within the previous 24 months.
These revolving lines of credit include:
- Consumer credit cards
- Consumer charge cards
- Store credit cards with one of the major payment networks (like Visa or Mastercard)
While it's clear that open-loop store credit cards -- those that work anywhere -- definitely count toward the 5/24 limit, some of your closed-loop cards (ones that only work at one store) may also count. If you're planning to open a Chase card soon, it's best to avoid opening any type of store credit card that may push you over the 5/24 limit.
If you’re an authorized user on another person’s account, that will also qualify under the 5/24 rule, because it’s listed on your credit report. Fortunately, this is one of the few times you may see some traction through reconsideration. (See “How to handle authorized user accounts” below for more.)
Do business credit cards count against the 5/24 limit?
Although your personal (consumer) credit history is checked when you apply for a business credit card, only a handful of issuers regularly report your business card activity to the consumer credit bureaus. This means most business credit cards won’t count against your 5/24 limit because the new account won't show up on your personal credit history.
There are, however, a few exceptions. The following banks will report business credit card activity on your personal credit, which means their business cards count toward your 5/24 status:
- Capital One
- Discover
- TD Bank
So, already having Chase’s own business cards won’t count against the 5/24 limit for a personal credit card because they aren't reported to the consumer credit bureaus. However, as noted above, when you apply for a Chase business card, it will be subject to the 5/24 rule.
Do other banks have 5/24 rules?
Not specifically, but many are adopting similar policies. Banks are getting wiser to consumers who apply for cards solely to earn sign-up bonuses. Too many recent hard credit inquiries or too many new credit accounts could both be reasons a bank rejects your credit card application.
That said, Chase is currently the only bank that has a hard limit on new accounts from any issuer. Other banks generally only limit how many of their own cards you can apply for within a set time period (or at all).
How to check your 5/24 status
The simplest way to determine your 5/24 status is to add up all your credit accounts from the last 24 months. If you've opened four or fewer new accounts in the last two years, you won't be subject to the 5/24 rule. If you're at five new accounts or more, you'll need to wait until your older accounts age past the 24-month mark.
You can get access to your credit history through a number of sources, including many free apps, as well as through some of your existing credit card accounts. You're also entitled to a free annual credit report from each bureau (Equifax, Experian, and TransUnion) through AnnualCreditReport.com.
When credit accounts officially stop counting
If you’ve opened five credit accounts within 24 months, you’ll be at 5/24 until the beginning of the 25th month. Here’s an example to better explain it.
Imagine you’re at 5/24 and you opened the first of those five accounts on Jan. 10, 2019. On Feb. 1, 2021, that first account will fall off and you’ll officially be at 4/24 in Chase’s eyes (if you haven't applied for any additional cards in that time).
In the scenario above, it would be wise to wait until Feb. 1 to apply for a credit card with Chase. If you applied earlier and received a denial, you could wait until Feb. 1, and then contact Chase’s reconsideration line.
How to handle authorized user accounts
There are two options if you’re over Chase’s limit because you’re an authorized user on somebody else’s account.
If you want to remain an authorized user or you’ve already been denied on a Chase application, you can call the Chase reconsideration line. Representatives will frequently push through applications if the only reason for the automatic 5/24 denial was an authorized user account. You must call within 30 days of your application for this to work.
If you haven’t applied for a Chase card yet and you don’t want to remain an authorized user, you can ask to be removed from the account. You or the primary account holder will need to do this with the card issuer, and you may also need to follow up with the credit bureaus to get the account taken off your credit report.
Are there exceptions or workarounds?
The only confirmed method for bypassing the Chase 5/24 rule requires already being a Chase customer. Some customers may receive a targeted "Just for You" credit card offer through their online account. To see if you have any targeted offers, select "Explore products" from the account menu, then go to the "Just for You" offers section.
Besides the "Just for You" offers, there are reports of applicants with four accounts opened in the previous 24 months successfully “doubling up” by submitting two separate Chase card applications on the same day. In some reports, this has worked -- in others, one application gets automatically rejected.
Either way, it's probably best not to make the attempt. Some cardholders have gotten all their cards canceled and have been blacklisted by Chase because they attracted too much attention with excessive credit card applications. It just isn’t worth it.
Getting the Chase cards you want
Given how many great travel rewards and cash-back cards Chase has, the 5/24 rule isn’t something to take lightly. You don’t want to end up unable to get Chase cards for a year or more because you were careless with your credit card applications.
If you’re just starting out, it’s the perfect time to apply for any Chase cards that grab your attention. And although the 5/24 rule can be frustrating when you’re over the limit, at least once you know about it, you can avoid wasting time and a hard credit inquiry on a doomed application.
