Chase 5/24 Rule
What is the Chase 5/24 rule?
Chase has an unwritten rule that if you’ve opened 5 or more personal credit cards (from any bank) in the last 24 months, you will not be approved for another Chase card.
Think of it as 5 slots that you have, and each credit card “falls off” after it’s been open for 24 months. Your slots are kind of like revolving doors.
Why is this rule important to know?
Chase cards earn the most flexible and versatile points - known as Ultimate Rewards - in this game. We don’t want to be in a position where Chase is denying our credit card applications because of the number cards we’ve opened.
This is why we strongly recommend starting with the Chase Sapphire Preferred card and then moving on to other Chase cards that make sense for you and your travel plans. If you’re interested in jumping into the pool of award travel and you don’t already have the Chase Sapphire Preferred, you should absolutely start with it. To read more about this particular card and to access our referral link , check out this blog post.
Other Factors to Consider
Figure out how many credit cards you’ve opened in the last 24 months because each one takes up a slot! This includes any credit cards at all - have you opened a Gap card recently to save 20% on your order? What about a Home Depot card to get a discount off that appliance you had to replace? They all count! So in addition to determining how many you’ve opened in the last 24 months, don’t open anymore of them.
Being an authorized user on someone else’s credit card often takes up one of your five slots. A phone call to the bank can likely have you removed, but it’s important to not be listed as an authorized user on new card applications moving forward. And definitely don’t list your Player Two as an authorized user. If you aren’t sure what I mean by Player Two, be sure to read this blog post.
With most cards, you can earn the welcome bonus more than once. In order to achieve this, you can’t be a current cardholder and it has to be 24 months or more since you’ve last earned the welcome bonus for that card. For instance, if I opened the Chase Southwest card and earned the welcome bonus, I could cancel it after a year (never close a card before the one-year mark), wait another year to get past the 24 month period from when I last earned the bonus, then reapply for it and earn the welcome bonus again. This is a pretty common practice in the world of award travel. It’s important to note, though, not every card abides by the 24-month rule. With the Chase Sapphire Preferred card for instance, you can only earn the welcome bonus every 48 months.
If you’re wondering how the heck we manage to keep all our cards straight, we highly recommend the app called Travel Freely (it’s free in the app store). It helps you track all the cards you’ve opened, the dates you opened them, the required minimum spend, and your deadline to earn the welcome bonus. It also tallies up all the points you’ve earned, it tracks your 5/24 status, and it offers a tool called the Card Genie that recommends your next card to open based on eligibility rules. Without this app, we’d have to maintain a manual spreadsheet…and nobody has time for that!
The one caveat to the 5/24 rule is business cards. Most business cards don’t count toward your 5/24 status and they don’t count against your personal credit. It’s a bit of a loophole in the game of award travel and it’s pretty important to know. If you’re reading this thinking there’s no way you qualify for a business card, hold that thought. More to come on this topic in the near future!
Overall, the Chase 5/24 rule is a huge factor in our award travel strategy. It’s crucial to consider if you’re looking to earn Chase Ultimate Rewards to transfer to Southwest for free flights, to Hyatt for free hotel stays, or to any other transfer partners of Chase - and there are a lot of them! The number one way we redeem our points is by transferring them to travel partners.
Think about the Chase 5/24 rule and how it impacts your credit card application strategy. Which Chase cards are most important to you? What do you want to use your points for? If you haven’t already, select a trip that you want to take in the next year or so and work backwards to determine the type of points you’ll need and which cards will help you earn them. Then prioritize any Chase cards by remembering to open them first.
Good luck! We’re here for any questions!
