The Strategy to Deal with Chase 5/24 and the Order In Which to Apply for Credit Cards

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If you’ve opened 5 or more new credit cards in the past 24 months, most people are excluded from many new Chase credit cards.

Only a small percentage of people sign up for 5 new cards in 2 years. Those who do spend less on each card, and keep cards for less time, than average. So the bank figures it is excluding unprofitable customers who want earn back the cost of signup bonuses.

Though not published, this is often referred to as the ‘5/24 rule’ where Chase typically only approves people for several of their new cards if they haven’t had 5 or more new card accounts in the past 24 months.

If you’re not sure where you stand — how recently you’ve opened new accounts — Credit Karma has an easy way to find out. When you pull your free credit report on their site, you can select to see your credit card accounts, and then sort by opening date of accounts.

Prioritize the Chase Cards That Are Subject to ‘5/24’

Get the Chase Sapphire Preferred Card as the first card in the frequent flyer rewards game (it’s my gateway drug — a great signup bonus at 50,000 points after $4000 spend within 3 months; great points that transfer to several different airline and hotel loyalty programs; and ‘try before you buy’ $0 annual fee the first year then $95).

Then I’d graduate to the Chase Sapphire Reserve Card which earns triple points on travel and dining (Sapphire Preferred earns double points) but has a $450 annual fee, partially offset by a $300 annual travel credit.

And I’d get the Chase Ink Business Preferred Credit Card, the small business card which I think has the very best card signup bonus right now at 80,000 points after $5000 spend within 3 months and earns 3 points per dollar on travel — that’s airlines, hotels, rental cars, tolls, even Uber — and 3 points per dollar on shipping and advertising on social media and search engines. It also comes with $600 protection against theft or damage when you use it to buy your cell phone.

Each of these are great Chase products, but most people report that they’re only able to get approved for them if they’re below ‘5/24’.

Blocked By 5/24, You Can Still Get These Chase Cards

Not all Chase cards seem to be covered by this “5/24” approach.

The British Airways Visa Signature® Card is not reported by readers to be subject to 5/24.

The Hyatt Credit Card also reportedly allows new card approvals for people over 5/24. It offers 2 free nights at any Hyatt hotel or resort worldwide after $2,000 in purchases in the first 3 months after account opening. You also get 5000 bonus points for adding an authorized user to your account and making a purchase with the card in that same 3 month time frame.


Park Hyatt Hadahaa, Maldives

Other travel rewards cards reportedly available to be over 5/24 are the Marriott Rewards Premier Business Credit Card, the IHG® Rewards Club Select Credit Card and the Ritz-Carlton Credit Card.

For completeness, it also appears that 5/24 restrictions do not seem to be imposed on the AARP, Amazon, or Disney cards.

Signing up for these cards do count as new cards when calculating whether you’re over (or well over!) 5 new accounts in the past 24 months. But being at or over 5/24 doesn’t prevent you from getting them.

Stay Under 5/24 While Applying for New Cards

If you’re an authorized user on someone’s account and that shows up on your card report, the card counts towards your five. Authorized user cards can be removed from consideration however. Closed accounts in general do count towards your five, it’s the number that you’ve opened not the number that are currently opened which are considered.

The best thing to know though is that most small business credit cards do not report on your personal credit. They will pull your credit when you apply, but your credit report won’t show the new account when you’re approved.

If you’re over 5/24 and waiting to age some of those new accounts to be eligible for consideration for many Chase products again, or you’re trying to stay under, you can still get cards like:

  • Business Gold Rewards Card from American Express OPEN which offers 50,000 Membership Rewards points after $5,000 spend on purchases with the card within your first 3 months of cardmembership. (Offer expired)

  • The Enhanced Business Platinum® Card from American Express which has an offer of up to 75,000 Membership Rewards points: 50,000 points after $10,000 spend within 3 months and an additional 25,000 points after you spend an additional $10,000 within those first 3 months. (offer expired)

    The $450 card comes with most of the same benefits as the personal Platinum card — like a $200 airline fee credit; Delta, Centurion, and Priority Pass Select airport lounge access; Hilton and Starwood (and therefore Marriott) elite status; although it doesn’t have the $200 Uber credit. It does comes with free Gogo internet passes though which the personal Platinum card does not.


    American Express Centurion Lounge Houston

  • CitiBusiness® / AAdvantage® Platinum Select® World MasterCard® which has an offer for a limited time to earn 60,000 American Airlines AAdvantage® bonus miles after making $3,000 in purchases within the first 3 months of account opening. (Offer expired)

    There’s a $0 annual fee the first year, then $95. Cardmembers receive one free checked bag (on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation) and preferred boarding on American Airlines domestic flights.


    American Miles Can Be Used for Business Class on Cathay Pacific

Apply for Chase Business Cards Even if You’re Over 5/24

Chase Ink Business Preferred Credit Card is a fantastic card, but if 5/24 shuts you out then Doctor of Credit says that in-branch a Chase Business Relationship Manager-submitted paper application goes through a different process that isn’t subject to the new recent application limits.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

More articles by Gary Leff »

Editorial note: any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Comments made in response to this post are not provided or commissioned nor have they been reviewed, approved, or otherwise endorsed by any bank. It is not the responsibility of any advertiser to ensure that questions are answered, either. Terms and limitations apply to all offers.

Comments

  1. It’s too expensive to stay under 5/24 – I would be missing out on $1,000’s of dollars/year in rewards. This is Chase’s problem – there are plenty others out there Amex, Barclays, Citibank, Bank of America and US Bank.

  2. In-branch pre approvals and the green selected for your links on Chase online both bypass 5/24. I was instantly approved in branch on Friday for another CSP despite being way over 5/24 and having 6 Chase cards.

  3. I got a denial from the Marriott card stating that I had too many credit cards. I’m 8/24.

  4. Does the 5/24 only apply to credit cards or does it mean all new accounts? I have car/mortgages, etc and biz/personal cards some within the last 24 mos.

  5. AVOID THE CHASE HYATT CARD

    Well, I’m not using this blog much anymore, but I was looking for somewhere to post a warning so others won’t get suckered in, and found this Chase post, so here goes:

    My wife and I each got the Chase Hyatt card, which has a sign up bonus of “2 Free Nights At Any Hyatt Property In The World”.(sic) according to every blog you will read. Having recently had our certs post, I called Hyatt to book a hotel in NYC for next September. That’s 4 months in advance, and many Hyatt properties, including the Park Hyatt, are showing availability to book standard rooms on points for our dates.

    BUT according to the CSR I talked to, they will not let us use our certs for any location in NYC at any point in the next 8 months ! When I originally told her I was looking to use our certs in NYC, before mentioning any specific property, nor any dates, she basically as ‘oh no, that will be very difficult to book’. She then searched Hyatt NYC property after Hyatt NYC property thru next November, and didn’t find even a single night anywhere. Which leaves me wondering if Hyatt and AA are using the same award booking engine. 🙁

    To add insult to injury, to search for availability online, you have to search night by night. If you try to search for more than a single night, according to the CSR, the cert availability will not show up, even if it is in fact available for those multiple nights.

    So together we paid $150 in AFs, did $4,000 in spend, and have 4 certificates that are useless for when/where we want to go, even though rooms are freely available on points.

    If you were thinking of getting this card: CAVEAT EMPTOR !!!!

  6. @Robert Hanson – you spoke to one call center agent who was misinformed or misunderstood. The free night certificates which are earned as a signup bonus for this card book into the same inventory as points redemptions (any standard room).

  7. even though i can’t get any chase card for another 8 months and i am not a churner, from chase’s stand point they made the right decision to implement the 5/24 rule.
    the rule deterred and prevented many churners from taking advantage and further diluting UR.

  8. @Gary Well, this is AKWARD, to say the least. 😉

    Even though I was a huge fan of this blog beginning @10 years ago, when it was the first travel blog I learned about, lately we haven’t exactly seen eye to eye on several issues, and I’ve basically stopped reading here on a regular basis. I only posted that here since this was the only blog I saw that referenced Chase apps recently.

    But you just SAVED my Summer vacation, as I’ve booked everything except NYC. Including things I probably can’t change, for instance a 2 person LH FC award back from FRA to BOS. We are already booked on HH points in Boston before NY, and then in DC at the Willard for after NYC. Just last night we made plans to meet our son and daughter in law in NYC, who will fly out from the West Coast to meet us there, and show us around since she went to Law School at NYU, and knows the what/where to go/do.

    And after the expense of 3 weeks in Europe, there is no way we can afford the additional $4,000 for 4 nights at a top notch NYC hotel.

    So thanks for your quick and gracious response. I just called Hyatt again, and this time got a very nice and knowledgeable CSR, who in about 10 minutes booked our King bed room at the NYC Park Hyatt for the exact 4 nights our schedule requires. .

    What a crazy day. I was excited to be booking the Park Hyatt. Then when the CSR said it just wasn’t possible to use our certs in NYC at any Hyatt NYC property anytime in the near future, I was both depressed and very angry at the same time. Now thanks to you I back in excited mode. 🙂

    Once again, the things I’ve learned from this blog over the years is more than I can begin to convey, much less repay in any significant way. Yes, I’ve happily used your affiliate links many times. But I’m sure I got more value from that than you did…..

    THANK YOU SO MUCH ! ! ! !

  9. @ Gary You might want to remove my original comment, since it contains erroneous misinformation from an apparently deranged 😉 CSR. Otherwise as people read that incorrect post they are liable to become as disappointed as I, luckily temporarily, felt.

  10. @Gary I’m confused, isn’t the new Chase Sapphire reserve card a better card overall, and give the cardholder many more benefits than the CSP card? Granted the yearly fee is more, but the perks you get are well worth it, this is according to you (when the card first came out) and all the other bloggers. I also would assume the Freedom Card would be on your list too. Why isn’t the Chase Ink Cash card not on your list?

  11. How exactly do I remove authorized user card from consideration? Or is that something that Chase may or may not do and I have no influence?

  12. A post that purports to describe “The Strategy to Deal with Chase 5/24” and then advises to get two cards — the CSP and CSR — that count toward the limit, when a better way to deal with the Chase 5/24 would be to just get one and the the superior of the two cards, the CSR (AF: -$150 the first year; $0 the second and $55 more than the CSP thereafter, but awards 3X to the CSP’s 2X), is a head scratcher…

  13. @Tony – Yes, I agree that Sapphire Reserve is better overall but many readers have told me that no matter the value proposition they will not get a $450 card. That’s especially true for people just getting started in miles and points. I see Sapphire Preferred as an excellent ‘gateway card’ — see what the points can do for you and then you’ll be much more open to the more expensive product.

    Since Ink Cash’s signup bonus is lower I think it’s great to downgrade to rather than sign up for, just MHO.

  14. @Gary — comprehension or reading is NOT my problem. I read and understood what you wrote and it still makes no sense to go for the CSP, an inferior product, and waste a 5/24 card in the process, when one would be better off going directly for the CSR, the superior card, which has no AF the first TWO years (in fact, one makes money the first year) and then just pay $55 more than the CSP thereafter, but one comes out ahead because of the CSR’s 3X vs. the CSP’s 2X. It is, therefore, you who seem to misunderstand that simple calculus.

  15. @DCS – Gary is being purposefully obtuse. The CSR has no referral $$ so bloggers are continuing to push the CSP. When selling the Citi Prestige for example, the same argument – that you can get the air/travel credit across two years – is used, so he is well aware of it. Saying that some folks have told him that they don’t want to pay the $450 fee is ingenuous. It’s very hard to be a salesman by being honest.

  16. @Gary claims: “… many readers have told me that no matter the value proposition they will not get a $450 card.”

    I find that hard to believe, considering what people did to try to get the CSR while it was red hot. It was not just for the 100K signup bonus. Everyone understood instinctively that this was a card the one keeps. Many downgraded their CSP or got rid of it altogether to make room for the CSR in their wallets. In addition, I doubt very much that anyone who can spend $4K in 3 months would turn and nickel and dime on the AF, especially if they are aware that the CSR’s $300 travel credit is “in real time.”

    Just in case there are really readers who have told you that no matter the value proposition they will not get a $450 card, send them to me. I will change their minds in a two minutes, or I will tell them to their faces that they have no business playing the game, and should hang it up. 😉

  17. @_ar — I’d just like for him to admit it, ’cause I truly find the half-truths distasteful…

  18. Thoughts:
    1) I completely agree that the CSR is far superior to the CSP but as a fact-the $450 AF is scary to many. I have been successful in getting my whole family (extended as well-about 8 people) on the CSP bandwagon but none will go for the CSR. It doesn’t matter how many times you do the math for them-they freak out at the AF.
    2) Some people only want to dip their toes vs jump down the rabbit hole of credit cards. The CSP is a nice and safe cc to do that with…3 digit AF’s are the plague to be avoided by many. Bang our heads on the wall but many will resist the logic.
    3) All these bloggers who get referral money from people who apply-good for them. We as readers have the right to not apply through their links OR take their advice if we feel it is skewed. The idea that what the bloggers say is what goes is ludicrous. We each can make our own intelligent decisions and go from there. If you don’t agree-don’t follow the advice or apply through their links. There is no point in constantly pointing out that referral links exists-we know this-it takes away from comments sections and frankly it’s like beating a dead horse.

  19. @AM My husband couldn’t get approved for CSR. Tried twice and was rejected. 2 of the 5 cards he had were AU’s on my chase cards. (They should have known that, as they were chase cards, but even when he contacted them and told them they were AU he was still rejected.) So he contacted Chase (logged into his online account and send a request) and asked to be removed as AU from those cards and to have them removed from his credit report. They did that no questions asked and it only took a few days to come off the credit reports. Then he reapplied and got approved.

  20. @ML — Well, you failed miserably to get the best product for 8 members of your family. The AF of $450 is “scary”. I quoted “scary” because I would find it scarier to spend $4K in 3 months than paying $450 ONCE PER YEAR. To make the minimum spend for CSR, I had to purchase a UA GlobalFirst TPAC ticket; fortunately for me it’d been a long planned expense, otherwise it would have been tough to justify spending so much in such a short interval.

    Bottom line: the AF of $450 would be scary only if it is NOT properly explained. A family member, who is trusted fully, explaining it clearly should dispel any misgivings…

  21. P.S. I would find it scarier to spend $4K in 3 months than paying $450 ONCE PER YEAR, but also remember that $450 isn’t even what one effectively pays for the CSR. It’s just $150/year with the $300 travel credit, which happens in REAL TIME, i.e., one earns it automatically after every travel-related expense, which can be a cab ride or a bus/subway/train/airline ticket.

    A no-brainer, really.

  22. @DCS you’re a veteran, albeit a misguided one, and with relatively high income. Step out of your own circumstance and try to put yourself in someone else’s shoes for a change.

  23. @Gary — This has little to do with individual circumstances or one’s level of income. It is simple common sense, and playing the game with a “full deck.” Anyone who can afford to spend $4K in three months and then claims to be “afraid” to spend $450 in 12 calendar months [actually $150 in 12 months] is either lying, simply misinformed or both. Period.

    To see “misguided”, just look in the mirror…

  24. Cindi: Thanks for info on AU. I wasn’t approved but told Chase that, as AU, I’m not liable. Then they approved me. Not so for my husband. Finally had to email exec office. Got a great contact who confirmed that AU doesn’t hit 5/24. However, she has moved on to another position at Chase, and I am concerned with future cards. So we’ll go ahead and remove as you instructed.
    Granted you give up usually 5,000 extra points and the ease of hitting minimum spend, but it’s not worth the hassle when Chase employees don’t know or don’t follow consistently. Thanks again!!!! Best blog/reply I’ve read in months!

  25. Well, I for one, would like to to get all the UR points I can and NOT pay any $450 fee to any card. If you are churning just one card at a time hoping to get some helpful points for a vacation, but don’t travel frequently, then it doesn’t seem smart to pay for high annual fees. I would just cancel the card and then get it again for another bonus in 24 months.

  26. So, I was looking at the Marriott Business card from Chase.

    Please confirm my understanding:

    Business cards don’t report on personal credit records, but because Chase can “see’ the application for this one – it counts as 5/24.

    right?

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