The Chase 5/24 Rule: How Opening And Closing Credit Cards Can Backfire (2024)

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In every game there are rules. And there are some who try to push the boundaries of these rules. In the world of credit card rewards, rules have been set by credit card issuers to limit the opportunities to push the boundaries. One of the more famous rules is known as the Chase 5/24 rule.

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Chase Sapphire Preferred® Card

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Welcome Bonus

60,000 bonus points

Annual Fee

$95

Credit Score

Excellent, Good

Regular APR

21.49%-28.49% Variable

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

Chase Sapphire Reserve®

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Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

Chase Freedom Unlimited®

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Welcome Bonus

Up to $300 cash back

Annual Fee

$0

Credit Score

Excellent, Good

Regular APR

20.49% - 29.24% Variable

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.

Chase 5/24 Defined

The 5/24 rule states that if you have been approved for five or more credit cards in the last 24 months, you will automatically be denied for any Chase credit card products. This is to prevent consumers from applying to credit cards solely for the welcome bonus and closing the account before the annual fee comes due.

Why Chase Uses the 5/24 Rule

Consumers who regularly earn welcome offers then cancel the cards are informally known as “churners” and can cost credit card companies millions of dollars.

Churners are aptly famous for applying for a credit card, earning the welcome bonus, then no longer using the card. This is done to the ire of credit card companies, as they earn revenue from both charging fees to merchants for accepting their cards and from interest from customers who carry a balance. If consumers are only interested in the welcome offer, the credit card company has no way to make money after the welcome offer has been earned.

According to a Sept. 2021 report by the Consumer Financial Protection Bureau (CFPB), consumers who opened a new card cited rewards, benefits and sign-up bonuses as the primary reason for applying. Paying out those rewards isn’t free and issuers aim to control those costs while at the same time continuously promoting their rewards programs for current and potential—profitable—customers.

How the Chase 5/24 Rule Affects You

The Chase 5/24 rule restricts consumers from being approved for any Chase credit card products after being approved for five or more credit cards, from any bank, within a 24 month period.

This may seem like nothing to worry about, but Chase credit card products, both personal and business credit cards, are considered some of the best on the market. From large welcome bonuses to benefits like concierge service and comprehensive coverages, such as travel insurance and rental car coverage, Chase cards can provide outsized value for many types of customers.

For some, this may not matter. For others reevaluating their points and miles strategy, being locked out of credit card products can be frustrating.

Are all Chase Cards Subject to 5/24?

Chase will consider your 5/24 status in applications for any and all of its credit cards.

How To Check 5/24 Status

There are no tools to automatically tell you your 5/24 status but you can easily calculate it on your own by checking your credit report. Currently, Experian, Equifax and TransUnion are offering free weekly online credit reports through the end of 2022 using the secure tool at annualcreditreport.com.

Once you have a copy of your credit report, you’ll need to look at the list of your accounts and check to see which ones have been opened in the past 24 months. Remember to check your closed accounts as well. The number of accounts opened within the past 24 months will give you your 5/24 status.

Only cards that are reported to your personal credit report count toward 5/24 status. Therefore, if you have cards that aren’t listed on your credit report, they aren’t counted in your 5/24 tally. This may include some (but not all) business cards.

How To Calculate 5/24 Score

To calculate your 5/24 score, you’ll need to count the number of credit cards listed on your personal credit report that were opened in the past 24 months, even if you’ve already closed them. This simple tally is all you need to calculate your 5/24 score.

What Accounts Add to My 5/24 Status?

All credit card accounts opened in the past 24 months and listed on your personal credit report add to your 5/24 status.

This includes:

  • Credit cards for which you are the sole cardholder
  • Credit cards for which you are an authorized user
  • Business cards that are listed on your personal credit card (including those from Capital One)
  • Retail or store cards that can be used anywhere (such as those issued by Visa, Mastercard or American Express)
  • Cards that were both opened and closed in the past 24 months

Business cards that are not listed on your personal credit report, such as those issued by Chase itself, do not add to your 5/24 status.

Accounts that were opened more than 24 months ago do not count toward your 5/24 status.

Strategy for Chase Credit Cards

If you only open a new account occasionally, you don’t need to have a formal strategy for applying to Chase credit cards. Someone who only opens one new card per year, or one card every few years, will automatically be under 5/24.

Creating a strategy for Chase credit card applications is only a consideration if you tend to open multiple accounts per year. With a line-up of co-branded travel cards that offer generous rewards and benefits, this isn’t as unusual as some people expect.

The best Chase credit card strategy is to plan and time your applications for when you are under 5/24 and won’t be automatically disqualified. Since you won’t be able to open every Chase credit card all at once, it’s recommended to start with the personal or small business cards that fit your needs best. Often, this includes cards from the Freedom, Sapphire and Ink product families. These products make up the “Chase Trifecta” and all earn valuable Chase Ultimate Rewards® points.

Remember that your 5/24 status is only one factor of your application. Chase still considers factors like your credit score, payment history, number of recent inquiries, debt-to-income ratio and more. It will also take your customer history, if you have one, into consideration. Because of this, you may want to hold off on some applications even if you’re under 5/24.

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3.4

The Chase 5/24 Rule: How Opening And Closing Credit Cards Can Backfire (6)

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Up to 6.5X Reward Rate

Earn an additional 1.5% cash back on up to $20,000 spent in the first year, after that 5% cash backRead More

Welcome Bonus

Up to $300 cash back

Annual Fee

$0

Regular APR

20.49% - 29.24% Variable

Credit Score

Excellent, Good(700 - 749)

Editorial Review

A good overall spending card that allows you to hold a balance on new purchases with a low introductory APR, pay no annual fee, and still earn at least 1.5% cashback on all purchases

Pros & Cons

  • Generous welcome offer for a no annual fee card
  • Unlimited 1.5% minimum earn rate for cash-back rewards
  • No minimum redemption amount
  • Foreign transaction fee
  • Ongoing balance transfer fee is high
  • Requires a companion card to transfer points to travel partners

Card Details

  • INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!
  • Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program thatlets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
  • After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
  • No minimum to redeem for cash back.You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expireas long as your account is open!
  • Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% – 29.24%.
  • No annual fee –You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
  • Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
  • Member FDIC

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Other Credit Issuers Have Rules, Too

To prevent similar instances of sign-up abuse, other credit card issuers have implemented their own application rules.

American Express: You can only be approved for two American Express products in a 90-day period. This is known as the American Express 2/90 rule.

Bank of America: Bank of America has several approval guidelines for consumers with multiple credit cards. You can be approved for a Bank of America credit card if you have been approved for fewer than the following from any bank:

  • Two new cards in a 30-day period
  • Three new cards in a 12-month period
  • Four new cards in a 24-month period

Capital One: Capital One application rules are extremely simple. At any time, you can only have up to two cards from Capital One, and only be approved for one card every six months. This rule encompasses personal and business credit cards.

Citi: Citi has a similar system to Capital One. You can only apply for one card (personal or business) every eight days and no more than two cards in a 65-day period. For small business owners, you are limited to one business card every 95 days.

What To Consider Before Applying for Future Credit Cards

To maximize your points and miles earning potential, there are several factors to consider before applying for another credit card, including Chase 5/24.

Credit issuer rules: If you want a specific card, be sure to research that issuer’s set of rules to ensure you are eligible to be approved.

Return on investment: Many rewards credit cards have annual fees. Some as modest as $95, with others of $550 or even higher. It is important to consider the return in value you are expecting to earn from each card based on rewards you expect to earn and benefits you are able to utilize.

Future opportunities: By applying for too many cards, you could find yourself on the outside looking in at new welcome offers or new credit card products. While it can be difficult not to jump at opportunities in front of you, this is a case where the tortoise may beat the hare.

Looming large purchases: If you plan on making large purchases such as a home remodel, car, college tuition or new computer, consider using that purchase to tackle the minimum spending requirement for a new card.

Applying for larger loans: If you plan on applying for a mortgage in the future, it is generally recommended to refrain from applying for new credit cards. Having too many inquiries on your credit report can affect your credit score, resulting in a higher interest rate on your mortgage or other loans.

Ability to stay organized: If you plan on applying for new cards, be sure to stay organized. If you like using multiple credit cards, it can become overwhelming to track multiple payment dates and spending categories. If you can’t track your cards successfully, you’ll end up paying late fees and interest charges that far outweigh the value of the rewards you’ll earn.

Chase Credit Cards To Consider If You’re Under 5/24

If a Chase credit card is in your future, and you are under the 5/24 mark, there are plenty of valuable credit cards to choose from.

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Card is an excellent option for those looking to start earning and using travel rewards for the first time. Cardholders will earn 5 points per dollar on travel purchased through Chase Travel℠, 3 points per dollar on dining, select streaming services, and online grocery purchases (excluding Walmart, Target and wholesale clubs), 2 points per dollar on all other travel purchases and 1 point per dollar on other purchases.

It currently offers a welcome bonus of 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening.

With this card, Chase Ultimate Rewards are worth 1.25 cents each when redeemed through the Chase travel portal (vs. 1 cent when redeemed for cash back). They can also be transferred to Chase’s partners, like United and Hyatt, at a 1:1 ratio. The card has a $95 annual fee.

Chase Sapphire Reserve®

The Chase Sapphire Reserve® offers purchases and travel protections built into the card.

Cardholders will earn 5 points per dollar on flights and 10 points per dollar on hotels and car rentals when purchasing travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3 points per dollar on other travel and dining and 1 point per dollar spent on all other purchases.

With the welcome offer, new cardholders can earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. This card has a $550 annual fee.

Chase Freedom Flex®

The Chase Freedom Flex® earns generous cash back on quarterly rotating categories.

Maximize the quarterly categories which earn 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. This card has a $0 annual fee.

You can also earn a welcome bonus when you are approved: $200 bonus after spending $500 on purchases in the first 3 months from account opening.

Ink Business Preferred® Credit Card

The Ink Business Preferred® Credit Card is a top credit card for business owners, with a remarkable welcome offer and modest annual fee of $95.

The card offers a strong welcome bonus: 100,000 points after spending $8,000 on purchases in the first 3 months from account opening. In addition, you will earn 3 points per dollar on the first $150,000 spent on travel and select business categories each account anniversary year and 1 point per dollar on all other purchases.

On top of the earning potential, you will have several complementary benefits including cellphone protection, travel insurance, rental car insurance and no foreign transaction fees.

The World of Hyatt Credit Card

The World of Hyatt Credit Card is an excellent option for a regular traveler who enjoys free hotel nights. As you spend on the card, you can earn higher loyalty program status levels, as well as free nights.

The card currently has a welcome offer of 30,000 bonus points after spending $3,000 on purchases in the first 3 months of account opening, plus up to 30,000 more bonus points by earning 2 bonus points per dollar spent in the first 6 months on purchases that normally earn 1 bonus point on up to $15,000 spent. In addition, you will earn up to 9 points total per dollar spent at Hyatt - 4 bonus points per dollar spent on qualified purchases at Hyatt hotels and up to 5 base points per dollar from Hyatt as a World of Hyatt member. Earn 2 bonus points per dollar spent at restaurants, on airline tickets purchased directly from the airlines, on local transit and commuting and on fitness club and gym memberships and 1 point per dollar on all other eligible purchases. This card charges a $95 annual fee.

Read More: The Best Chase Credit Cards

Credit Cards To Consider If You’re Over 5/24

If you are currently over 5/24, you won’t be able to get the cards listed above. However, other issuers offer cards that are competitive with Chase’s top cards. Here are a few that are worth considering.

The Platinum Card® from American Express

The Platinum Card® from American Express (Terms apply. See rates & fees) is an excellent card for regular flyers and those who enjoy luxury benefits during their travels. With access to airport lounges around the world and concierge service, it is designed for avid travelers with the ability to utilize its benefits.

The card has a welcome offer: 80,000 Membership Rewards Points after spending $8,000 on eligible purchases on the card in the first 6 months of card membership. These points can be transferred to airline and hotel partners such as Delta Air Lines, Singapore Airlines, Hilton Hotels and Marriott Hotels.

This card charges a $695 annual fee but offers benefits to match.

Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express (Terms apply. See rates & fees) is a great cash-back credit card for those who spend regularly at U.S. supermarkets and gas stations. The card has a welcome offer: $250 statement credit after spending $3,000 in eligible purchases within the first 6 months.

In addition, cardholders will earn rewards of 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit on Amazon.com at checkout. This card has a $0 intro annual fee for the first year, then $95 annual fee.

Read More: The Best Credit Cards

The Best Chase Credit Cards Of 2024

Find the best Chase credit card for your needs.

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Bottom Line

Credit card welcome bonuses are tempting to earn. Getting rewarded for spending you would do anyway is also appealing. But it is best to avoid applying for too many cards too quickly. You’ll stay on Chase’s good side and also do the responsible thing for your credit score.

To view rates and fees for The Platinum Card® from American Express please visit this page.
To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.

Frequently Asked Questions

Do Chase business cards count toward 5/24?

Chase Business cards do not count toward your 5/24 status because they are not listed on your personal credit report. Business cards from other issuers may count toward your tally.

How can I get around the Chase 5/24 rule?

There are no publicly available methods to get around the Chase 5/24 rule, but there are a few ways to be considered for a manual exception.

Applicants who are only above five new cards in the past 24 months because they are an authorized user on one or more cards may call Chase and ask those cards to be excluded from consideration. This request is sometimes, but not always, granted.

For business cards only, applicants may visit a branch location and ask a business relationship manager to file a paper application. This bypasses the 5/24 rule and well-qualified applicants may be approved. In-branch applications for personal cards only bypass the 5/24 rule if you have already been pre-approved for the card.

Lastly, some Ultimate Rewards cards will allow you to get around the Chase 5/24 restrictions if you received a targeted invitation to apply in the mail. These personalized offers come with an individual RSVP code that can’t be transferred to anyone else and do not work toward co-branded cards.

Does the 5/24 rule affect other card issuers?

Though the 5/24 rule is unique to Chase and does not affect other card issuers, other rules and restrictions may apply. The most popular card issuers, including American Express, Capital One and Citi, all have their own application rules to discourage churning.

The Chase 5/24 Rule: How Opening And Closing Credit Cards Can Backfire (2024)

FAQs

The Chase 5/24 Rule: How Opening And Closing Credit Cards Can Backfire? ›

Chase 5/24 rule.

Will opening and closing a credit card hurt your credit? ›

The longer you've had credit, the better it is for your credit score. Your score is based on the average age of all your accounts, so closing the one that's been open the longest could lower your score the most. Closing a new account will have less of an impact.

Does Chase 5 24 apply to closed credit cards? ›

To calculate your 5/24 score, add up all the credit cards that you have been approved for over the past 24 months. Look at the sections that contain the list of both your open and closed accounts. Even if an account is currently closed, if it was opened within the past 24 months, Chase will count that card.

What happens if I open a credit card before closing? ›

Opening a new line of credit

It's not just big purchases that can alter your credit score. Opening a new credit card or closing an existing one can affect your standing, too. Before your mortgage closing, lenders assess the credit risk they are taking on and evaluate that risk for each loan applicant.

Can I close a credit card and reopen it? ›

More often than not, issuers will let you reopen a closed credit card account. But your request may be unsuccessful if your timing doesn't abide by the issuer's policies.

Is it better to cancel unused credit cards or keep them? ›

In general, keep unused credit cards open so you benefit from longer average credit history and lower credit utilization. Consider putting one small regular purchase on the card and paying it off automatically to keep the card active. At Experian, one of our priorities is consumer credit and finance education.

Is it better to close a credit card or leave it open with a zero balance? ›

If you can avoid closing a credit card, or if you don't really need to close a card, you're almost always better off leaving your account open. This is especially true if you're trying to improve your credit score or at least not hurt it, and if you have a rewards balance you haven't yet used.

How do I get past Chase 5 24 rule? ›

It indicates an expandable section or menu, or sometimes previous / next navigation options. To avoid the Chase 5/24 rule, wait to apply for a new Chase card until some of your recently opened accounts fall outside the 24-month window. Prioritize applying for the Chase cards that offer the most value to you.

Is Chase 5 24 rule strict? ›

What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

What is the 2 30 rule for Chase? ›

Chase 2/30 rule: Too many new cards in one month? Some credit card experts believe that Chase is also likely to decline new card applications if you have opened two credit cards within 30 days. This is known as the "2/30 rule." Because I had just opened two new cards, Chase was reluctant to let me open another.

Is it bad to open a store credit card then close it? ›

Yes, closing credit cards, including a store credit card, can hurt your credit score.

Is it bad to open a credit card and close it within a year? ›

Experts generally don't recommend you ever cancel a credit card, unless you're paying for it (such as in the form of an annual fee) and not ever using it. And if this is the case, canceling a card once probably won't hurt you as long as you have a healthy credit history otherwise.

How long should I keep a credit card open before closing it? ›

You can keep a credit account open as long as you'd like without harm to your credit. Even if you've stopped using the card regularly, it could still make sense to keep the account open, depending on how extensive your credit history is and the amount of debt you currently owe.

What happens if you open a credit card and cancel it right away? ›

Opening a credit card and closing it quickly is also damaging for scores with a short credit history and can impact your chances of being offered loans. Even though hard inquiries only affect scores by a few points, each inquiry for a line of credit goes on your record.

Is it bad to open 2 credit cards back to back? ›

Applying for more than one credit card at a time could have a negative impact on your credit score.

What happens when Chase closes your credit card account? ›

When you lose access to your credit card account, you're losing the credit limit, which affects your credit utilization ratio and your credit score. For example, when your credit card gets closed, your credit utilization ratio will generally spike. When this ratio increases, your credit score could be hurt as well.

How much will my credit drop if I cancel a credit card? ›

While there's truth to the idea that closing a credit account can lower your score, the magnitude of the effect depends on various factors, such as how many other credit accounts you have and how old those accounts are. Sometimes the impact is minimal and your score drops just a few points.

How much will opening a credit card hurt my score? ›

To avoid this, experts recommend waiting about three to six months between applications for a loan and a new credit card. How much does your credit score drop when you open a new credit card? Opening a new credit card should decrease your credit scores by just a few points—usually around five to 10 points.

Is closing your first credit card bad? ›

Experts often warn against closing a credit card, especially your oldest one, since it can have a negative impact on your credit score.

Does closing a credit card affect credit rating? ›

The simple answer is yes. Cancelling an unused credit card is likely to affect your credit score. However, it will depend on a number of factors as to whether your credit score goes up or down.

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