topic Re: What does Chase 5/24 count? in Credit Card Applications

What does Chase 5/24 count?

myquestionsfico — Mon, 27 Jul 2020 19:08:39 GMT

I have been in rebuilding mode the last few years and currently at 9/24, though two of these accounts I decided to close after around a year because I had gotten some that were duplicative and not really being used. Do the 2 closed accounts count towards 5/25 for Chase? I am assuming they do.

I should be at 4/24 around this time next year, where I'd like to get a Chase Sapphire Preferred (that is, if the world opens up to travel again). Until that time, no apps for me!

Re: What does Chase 5/24 count?

Anonymous — Mon, 27 Jul 2020 19:10:11 GMT

Yes, closed accounts are counted... The metic is accounts opened.

Re: What does Chase 5/24 count?

KLEXH25 — Mon, 27 Jul 2020 19:39:16 GMT

You basically have to count how many revolving accounts you have opened in the past 2 years (24 months). So an account that was opened with SP still counts, and an account that was opened and then subsequently closed still counts too.

Re: What does Chase 5/24 count?

myquestionsfico — Mon, 27 Jul 2020 22:31:33 GMT

Thank you both. Totally makes sense, and honestly, I'm fine with the ones that I closed counting towards the 5.

How about something like Amex Platinum, which must be paid in full each month? Does that count, as it is not a revolver?

Re: What does Chase 5/24 count?

KLEXH25 — Mon, 27 Jul 2020 22:35:43 GMT

@myquestionsfico wrote:
Thank you both. Totally makes sense, and honestly, I'm fine with the ones that I closed counting towards the 5.

How about something like Amex Platinum, which must be paid in full each month? Does that count, as it is not a revolver?

Yes it counts.

https://www.doctorofcredit.com/chase-524-rule-explained-detail-need-know/

Re: What does Chase 5/24 count?

myquestionsfico — Mon, 27 Jul 2020 22:50:44 GMT

Thank you!

Re: What does Chase 5/24 count?

TSlop — Tue, 28 Jul 2020 01:15:22 GMT

Keep in mine that accounts like Google, Dell, and other similar accounts..... count. I opened an account for 0% financing at a furniture store and that counted.

Re: What does Chase 5/24 count?

myquestionsfico — Tue, 28 Jul 2020 12:06:32 GMT

Yes, but per the link shared, VISA-like accounts - that can be used in more places than with single vendor - count, but if they are single vendor only they do not. Is that not the case?

Re: What does Chase 5/24 count?

TSlop — Tue, 28 Jul 2020 12:21:36 GMT

@myquestionsfico wrote:
Yes, but per the link shared, VISA-like accounts - that can be used in more places than with single vendor - count, but if they are single vendor only they do not. Is that not the case?

It's certainly possible, but if you are concerned, you'd want to research before opening a new one or counting your own status. My furniture account (Wolf's) and Google are Synchrony, and Dell is a webank, and all show up as revolving charge accounts, so they count. I think my Wolf's account can be used at participating stores (just got an email about it actually). Google, I'm not sure where else that can be used, if anywhere. I think I saw a forum post about the Dell account being able to be used somewhere else, but I don't know where.

Re: What does Chase 5/24 count?

myquestionsfico — Tue, 28 Jul 2020 12:35:01 GMT

Thanks so much. This is a perfect example of why these forums are so great. The credit industry is such a train wreck - so many rules and unwritten rules and exceptions. I'm always amazed when people navigate it WELL. Guess the only way to do that is to arm yourself with knowledge, be proactive, and make smart choices (as best as you can).

Re: What does Chase 5/24 count?

TSlop — Tue, 28 Jul 2020 13:00:35 GMT

@myquestionsfico wrote:
Thanks so much. This is a perfect example of why these forums are so great. The credit industry is such a train wreck - so many rules and unwritten rules and exceptions. I'm always amazed when people navigate it WELL. Guess the only way to do that is to arm yourself with knowledge, be proactive, and make smart choices (as best as you can).

This is why I don't care for the 5/24 rule, as it currently stands. A normal person that isn't using this website could easily go over 5/24 and not even know it by using 0% financing accounts and maybe 1 credit card. No one that I personally know knows about this rule.

For example: someone sees the fancy CFU commercial with Kevin Hart. They opened a credit card 23 months ago, so they think that's more than enough time in between getting credit cards. But they get a denial letter with the reason too many accounts opened in 24 months. What they didn't realize is that the furniture set, new phone, new laptop, ruined it.

I think the rule would be better applied strictly to credit card accounts, because in my eyes, the rule is only around to stop churners and credit seekers. I wouldn't consider people opening 0% financing accounts for specific/one-time-only purchases credit seeking behavior, though.

Re: What does Chase 5/24 count?

randomguy1 — Tue, 28 Jul 2020 15:19:02 GMT

@TSlop wrote:
@myquestionsfico wrote:
Thanks so much. This is a perfect example of why these forums are so great. The credit industry is such a train wreck - so many rules and unwritten rules and exceptions. I'm always amazed when people navigate it WELL. Guess the only way to do that is to arm yourself with knowledge, be proactive, and make smart choices (as best as you can).
This is why I don't care for the 5/24 rule, as it currently stands. A normal person that isn't using this website could easily go over 5/24 and not even know it by using 0% financing accounts and maybe 1 credit card. No one that I personally know knows about this rule.

For example: someone sees the fancy CFU commercial with Kevin Hart. They opened a credit card 23 months ago, so they think that's more than enough time in between getting credit cards. But they get a denial letter with the reason too many accounts opened in 24 months. What they didn't realize is that the furniture set, new phone, new laptop, ruined it.

I think the rule would be better applied strictly to credit card accounts, because in my eyes, the rule is only around to stop churners and credit seekers. I wouldn't consider people opening 0% financing accounts for specific/one-time-only purchases credit seeking behavior, though.

It would be nice if those things were clearly documented at application time, wouldn't it?

Everyone should remember to google these things before applying to any card:

"doctor of credit <creditor> application rules"

or more specifically

"doctor of credit everybody should know about <creditor> credit cards"

creditor = chase, citi, bank of america,, wells fargo, amex, etc..

Example when using the above for Chase:

https://www.doctorofcredit.com/18-things-everybody-should-know-about-chase/

At the bottom of the page you will see the following hyperlinks:

You can view other posts in this series by clicking the links below.

Re: What does Chase 5/24 count?

KLEXH25 — Tue, 28 Jul 2020 15:40:50 GMT

@TSlop wrote:
@myquestionsfico wrote:
Thanks so much. This is a perfect example of why these forums are so great. The credit industry is such a train wreck - so many rules and unwritten rules and exceptions. I'm always amazed when people navigate it WELL. Guess the only way to do that is to arm yourself with knowledge, be proactive, and make smart choices (as best as you can).
This is why I don't care for the 5/24 rule, as it currently stands. A normal person that isn't using this website could easily go over 5/24 and not even know it by using 0% financing accounts and maybe 1 credit card. No one that I personally know knows about this rule.

For example: someone sees the fancy CFU commercial with Kevin Hart. They opened a credit card 23 months ago, so they think that's more than enough time in between getting credit cards. But they get a denial letter with the reason too many accounts opened in 24 months. What they didn't realize is that the furniture set, new phone, new laptop, ruined it.

I think the rule would be better applied strictly to credit card accounts, because in my eyes, the rule is only around to stop churners and credit seekers. I wouldn't consider people opening 0% financing accounts for specific/one-time-only purchases credit seeking behavior, though.

Although it would be nice if more banks were transparent, the average consumer probably doesn't apply for that many cards in a 2 year period anyway. And if you are the type, you're probably already on these forums and know about it.