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Chase issues some of the better credit cards available today so cards like the Freedom Flex Card, the Freedom Unlimited Card, and the Chase Sapphire Preferred Card are in high demand, and that makes it incredibly important for people to understand what may impact their chances of picking one of these cards up.
Chase’s 5/24 rule can be a key obstacle to successfully applying for some of the great consumer and business cards that Chase offers so this post sets out, in brief, the key aspects of the rule that everyone should be aware of.
Chase’s 5/24 Policy
Chase’s 5/24 policy says that if you’ve been approved for 5 or more credit cards over the past 24 months the card issuer will probably not approve you for another credit card. That’s the main part of the policy that miles & points fans should be aware of, but the policy has nuances too:
- It’s not just credit cards from Chase that count towards the 5 card maximum – approved cards from Amex, Citi, Barclays, etc… also count.
- Not all business cards will count towards the 5 card maximum as not all business cards get reported on a person’s personal credit profile.
- Authorized user accounts will count against the 5 card maximum but there are reports of people calling up Chase, explaining that they’re only an authorized user and having their applications re-submitted if they’ve been rejected thanks to 5/24.
- If you’re over the 5/24 limit you can still be added as an authorized user to another person’s Chase card.
- Product changes (when one card is converted to another) generally do not count against the 5 card maximum as product changes are usually not reported on a person’s credit profile as a new account. If, however, a product change results in a person’s credit score being pulled and/or the product change results in a cardholder getting a new card number, that will be viewed as a new account and it will affect a person’s card count towards 5/24.
What Counts & What Doesn’t?
There was a time when not all of Chase’s consumer credit cards counted towards the 5/24 rule but, sadly, those days are behind us and all consumer cards now add to the 5/24 count.
If you’ve opened a new Chase Business Card in the past 24 months…
Ink Business Preferred Credit Card (review)
Ink Business Unlimited Credit Card (review)
Ink Business Cash Credit Card (review)
United Business Card
Southwest Rapid Rewards Performance Business Credit Card
Southwest Rapid Rewards Premier Business Credit Card
…it will have an effect on your 5/24 “score” because Chase is aware that you’ve opened up a new account.
However, most other business cards will not have an impact on a person’s 5/24 “score” because they’re generally not reported on a person’s credit file so Chase has no idea that a new account has been opened.
That means that fantastic cards like the Blue Business Plus Credit Card from American Express (review) and the useful Business Platinum Card from American Express will not impact a person’s ability to successfully apply for a Chase credit card.
Chase issues some of the best rewards credit cards on the market (the Freedom Flex Card that Chase unveiled late last year is one of the best credit cards around) so it’s important to understand how the 5/24 rule works and how it will affect you.
In brief, all consumer cards will count towards Chase’s 5/24 rule, all Chase business cards will count towards Chase’s 5/24 rule, but most business cards issued by anyone other than Chase will not.
The most important thing to remember is that, if you’re looking to apply for more than one credit card and you’re under the 5/24 threshold, you should make sure you apply for any Chase cards that you’re interested in first before then applying for cards for any cards offered by other card issuers.