How does the Chase 5/24 rule work?

Chase generally will not approve an individual for a new credit card if they have five or more new accounts opened in the last 24 months.

In the US, Chase has the following wording on many of their card products: “You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months”. This isn’t a strict rule, but rather their guidelines when reviewing your application. While many card accounts count towards this limit, there are some exceptions.

Personal credit and charge cards count towards this limit. If you’ve had five or more such accounts opened in the past 24 months, then Chase generally will not approve you for a new credit card.

Meanwhile, business cards (for example, the US-issued Business Platinum Card from American Express) generally don’t report activity to the credit bureaus in the US, and so they typically do not count towards 5/24.

While Chase doesn’t publish this wording on co-branded cards like the IHG Rewards Club Premier Card, there are many anecdotes that the rule applies to all their card products. Therefore, it would be best to avoid Chase while above 5/24, especially with a hard credit check involved.

Canadians have a few options when it comes the Chase 5/24 rule. Your first few starter cards (either through a cross-border bank or American Express Global Transfer) will be fairly old by the time you can get approved for Chase cards, so by the time you’re obtaining your fifth US card, your first few cards may already be over 24 months old.

During the intervening period, Canadians can also take advantage of American Express business cards which wouldn’t appear on their credit report; while the business cards wouldn’t contribute to your US credit history, you’d be able to get the welcome bonus without affecting your 5/24 status.


Last updated 11 May 2019. Any questions?
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