What is Chase's 5/24 Rule

Do you know about 5/24 rule on Credit Cards

Some of you might be wondering why is it so hard to get approved on a Chase Credit Card. You might be falling under Chase’s 5/24 rule. This is one of the check Chase does before decisioning on your credit card. Lets take a deeper look into Chase’s 5/24 rule.

What is Chase’s 5/24 Rule

Chase 5/24 rule is a decision factor on its credit card approval process. If you have 5 or more credit cards approved in the last 24 months, then your credit card application most likely to be denied. This rule is in place to reduce credit card churning. By this way, it can reduce the number of churners who takes advantage of credit card rewards and bonus programs.

Do you know about 5/24 rule on Credit Cards

Which Cards are considered in this 5/24 Rule

Any kinds of personal credit cards, Business credit cards are taken into factors for this rule. It also consider if you’re are an authorized user to another personal card. If you’re an authorized user of a business card, it’s not considered under this rule.

Does other banks have similar 5/24 rule

  • American express has similar rule where you cannot avail the bonus offers on same card with a 24 month period.
  • Bank of America has many rules where you cannot apply for more than 2 cards within 60 days of another application. They have another rule where you are limited to 3 cards within 12 month rolling period and 4 cards within 24 month rolling period.
  • Citi has a 48 month rule on airline card where you cannot claim bonus offers more than once within 48 months after your first application.

Final Thoughts

All these guardrail rules are in place to stop the misuse or limit churning. Its not a very good idea to get more credit cards in general so you won’t be falling into credit card debt. Also Mortgage lenders mostly take the number of credit cards as a factor in their approval process. It will be difficult to manage when you have more cards and it also affects your credit score when you close out an old card.

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