Cracking the Code: Chase's 5/24 Rule Demystified for Credit Card Users
If you're a frequent credit card user, you've probably heard of the infamous 5/24 rule from Chase. This rule is a key part of Chase's credit card application process, and it can have a major impact on your ability to earn rewards and enjoy the benefits of their credit cards.
So, what exactly is the 5/24 rule? Essentially, it means that if you've opened more than five credit card accounts in the past 24 months, you may be automatically denied for certain Chase credit cards. This includes both personal and business credit cards.
The purpose of the 5/24 rule is to prevent people from opening multiple credit card accounts just to earn sign-up bonuses and then canceling them soon after. This practice, known as "churning," can be costly for credit card issuers and can also hurt your credit score if done incorrectly.
While the 5/24 rule can be frustrating for those who love earning credit card rewards, there are some ways to work around it. Here are some tips:
Prioritize Chase Cards: If you're planning to apply for a Chase credit card, make sure it's at the top of your list. That way, if you're denied due to the 5/24 rule, you won't have wasted a hard credit inquiry on another card.
Consider Business Cards: The 5/24 rule only applies to personal credit cards, so if you have a small business, you may be able to apply for a Chase business card without it counting towards the 5/24 limit.
Wait It Out: If you've already hit the 5/24 limit, you may need to wait until some of your credit accounts fall off your credit report before applying for a Chase card.
Apply In-Branch: Some Chase branches may have different application rules than online or phone applications, so it may be worth visiting a branch to see if you can bypass the 5/24 rule.
Consider Other Issuers: If you're set on earning credit card rewards, there are plenty of other issuers besides Chase that offer great rewards programs. Do your research and find the card that's right for you.
While the 5/24 rule can be a hurdle for credit card users, it's important to understand why it exists and how to work around it. By following these tips, you can still earn credit card rewards and enjoy the benefits of a solid rewards program