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Chase 5/24 rule

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leo187um
New Contributor

Chase 5/24 rule

Hi I have a few questions about the famous 5/24 rule with Chase credit cards. I've seen many variations of the rule so wanted to come here to get the definitive answer to what the 5/24 entails. Please answer the following:

 

  • Does the 5 only count "Cards opened" or do they include all application/hard inquiries for credit cards? 
  • Does the 5 include all account types (do personal loans count as part of the 5 for example)?
  • When applying for the Business Ink credit cards, does it also have a 5/24 rule?
  • All else equal does it matter in terms of limits you receive if you're at a 1/24 or 5/24 hypothetically when applying for a Chase card?
  • Does the 5/24 rule come into effect for CLI requests via the app? 

Thanks.

Message 1 of 16
15 REPLIES 15
805orbust
Valued Contributor

Re: Chase 5/24 rule

So 5/24 applies to both business and personal cards.  There have been more occasions lately where Chase approves despite 5/24 status, but it's not a rule. It only measures new accounts opened.  It is my understanding that all accounts are counted.  I can't comment on the effect it has on starting limits, however it is a factor in increases as well.  I'm gonna tag @FinStar  as well in case I missed anything 😉



Message 2 of 16
FinStar
Moderator Emeritus

Re: Chase 5/24 rule


@leo187um wrote:

Hi I have a few questions about the famous 5/24 rule with Chase credit cards. I've seen many variations of the rule so wanted to come here to get the definitive answer to what the 5/24 entails. Please answer the following:

 

  • Does the 5 only count "Cards opened" or do they include all application/hard inquiries for credit cards?  This is specific to accounts opened in the past 24 months. Keep in mind, the 5/24 restriction is one hurdle of many that Chase's algorithms will consider since too many inquiries can be a factor as well.
  • Does the 5 include all account types (do personal loans count as part of the 5 for example)? It includes all revolving and charge types of accounts, whether it's an AmEx Gold Card, a store card, a personal revolving line of credit, overdraft line of credit, and so on. Typically, installment loans such as mortgages, vehicle loans or student loans are excluded from the count -- emphasis on count.
  • When applying for the Business Ink credit cards, does it also have a 5/24 rule? Yes, Chase's biz cards are also subject to 5/24 when you apply.
  • All else equal does it matter in terms of limits you receive if you're at a 1/24 or 5/24 hypothetically when applying for a Chase card? Assigned limits + APR are risk-based on a plethora of factors. Complex algorithms make the determination. For instance, whether DTI is low/high, capacity, your scores (Chase uses their own model - CARS), too many open revolving accounts, existing accounts with Chase, income, etc. So, it's all profile-specific and not really where you stand as far as 1/24 or 4/24.
  • Does the 5/24 rule come into effect for CLI requests via the app? It is still unknown if 5/24 applies to any pre-qualified [SP] CLIs via the app -- still based on eligibility. Though, if you request a standard CLI through an agent or SM, any declined requests have indicated that 5/24 has been cited as a reason in a variety of cases.

Thanks.


@805orbust - thanks for the tag and you covered it pretty well.

 

For the specifics, reference comments above @leo187um .

Message 3 of 16
leo187um
New Contributor

Re: Chase 5/24 rule

Awesome! Very helpful.

Message 4 of 16
Mdowning30
Established Contributor

Re: Chase 5/24 rule

Another good note is that the 5/24 rule either doesn't apply or has relaxed in regards to co-branded cards such as the Amazon Prime Visa, United, Southwest, and possibly Hyatt.

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 694
| Experian Vantage : 701 | TransUnion FICO 8 : 683 | TransUnion Vantage : 695 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 693
Goal Score: 700+

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Message 5 of 16
FinStar
Moderator Emeritus

Re: Chase 5/24 rule


@Mdowning30 wrote:

Another good note is that the 5/24 rule either doesn't apply or has relaxed in regards to co-branded cards such as the Amazon Prime Visa, United, Southwest, and possibly Hyatt.


@Mdowning30 - this is not 100% accurate. Do a search for denials for those particular products for applicants who were not approved as a result of 5/24. While in a variety of cases Chase may have approved specific profiles, that doesn't translate into all profiles. It's a fairly small percentage. Most individuals can bypass the Amazon 5/24 restriction via through a pre-qualified offer, but we've also seen denials on that too. There are plenty of DPs here, Reddit and FT.

Message 6 of 16
Jordan23ww
Valued Contributor

Re: Chase 5/24 rule


@FinStar wrote:

@leo187um wrote:

Hi I have a few questions about the famous 5/24 rule with Chase credit cards. I've seen many variations of the rule so wanted to come here to get the definitive answer to what the 5/24 entails. Please answer the following:

 

  • Does the 5 only count "Cards opened" or do they include all application/hard inquiries for credit cards?  This is specific to accounts opened in the past 24 months. Keep in mind, the 5/24 restriction is one hurdle of many that Chase's algorithms will consider since too many inquiries can be a factor as well.
  • Does the 5 include all account types (do personal loans count as part of the 5 for example)? It includes all revolving and charge types of accounts, whether it's an AmEx Gold Card, a store card, a personal revolving line of credit, overdraft line of credit, and so on. Typically, installment loans such as mortgages, vehicle loans or student loans are excluded from the count -- emphasis on count.
  • When applying for the Business Ink credit cards, does it also have a 5/24 rule? Yes, Chase's biz cards are also subject to 5/24 when you apply.
  • All else equal does it matter in terms of limits you receive if you're at a 1/24 or 5/24 hypothetically when applying for a Chase card? Assigned limits + APR are risk-based on a plethora of factors. Complex algorithms make the determination. For instance, whether DTI is low/high, capacity, your scores (Chase uses their own model - CARS), too many open revolving accounts, existing accounts with Chase, income, etc. So, it's all profile-specific and not really where you stand as far as 1/24 or 4/24.
  • Does the 5/24 rule come into effect for CLI requests via the app? It is still unknown if 5/24 applies to any pre-qualified [SP] CLIs via the app -- still based on eligibility. Though, if you request a standard CLI through an agent or SM, any declined requests have indicated that 5/24 has been cited as a reason in a variety of cases.

Thanks.


@805orbust - thanks for the tag and you covered it pretty well.

 

For the specifics, reference comments above @leo187um .


@FinStar  great info! I'd like to add as a small sample size my experience for @leo187um  regarding soft pull auto limit increases with Chase, being at or over 5/24. Neither my wife or I have yet to receive an automatic limit increase on her Amazon Prime card or my original Chase Freedom in the 3 plus years we've had them. We've been over 5/24 since March 2020 when she got the Prime and added me as an AU until November 2022 when we finally dropped below. I've read about the wave of limit increases on the Prime card Chase was throwing out after Amazon was rumored to be parting ways with Chase, yet she still got nothing.  We frequently use both our cards and always pay in full.  So I am of the belief that being over 5/24 plays a role in both automatic limit increases and from what I've been told requests for limit increases with Chase.

      


Message 7 of 16
FinStar
Moderator Emeritus

Re: Chase 5/24 rule


@Jordan23ww wrote:


@FinStar  great info! I'd like to add as a small sample size my experience for @leo187um  regarding soft pull auto limit increases with Chase, being at or over 5/24. Neither my wife or I have yet to receive an automatic limit increase on her Amazon Prime card or my original Chase Freedom in the 3 plus years we've had them. We've been over 5/24 since March 2020 when she got the Prime and added me as an AU until November 2022 when we finally dropped below. I've read about the wave of limit increases on the Prime card Chase was throwing out after Amazon was rumored to be parting ways with Chase, yet she still got nothing.  We frequently use both our cards and always pay in full.  So I am of the belief that being over 5/24 plays a role in both automatic limit increases and from what I've been told requests for limit increases with Chase.


@Jordan23ww 

Right. The general consensus seems to be that if a profile is over 5/24, then that also applies to customer-initiated CLI requests. I'm not sure (since we'll never know) how it might apply to auto-CLIs or perhaps it could be treated much the same way when someone could bypass the 5/24 restriction for new apps if a pre-approved offer is dangled in front of us.

 

My experience last year (during the auto-CLI frenzy), especially with Amazon and CSP, >2 auto-CLI were granted< and I was definitely way over 5/24, more like HolyMoly/24 and Chase granted it on those 2 particular accounts. I can only assume the history and usage 🤷‍♂️

Message 8 of 16
leo187um
New Contributor

Re: Chase 5/24 rule

Chase seems to have some good business credit cards but I will have to wait until July 2024 to become eligible to apply... 

 

Would it be better to go for Amex? Any other recommendations for biz cards with high limits 0pct APR periods to shoot for? Credit score is very good category.. 

Message 9 of 16
FinStar
Moderator Emeritus

Re: Chase 5/24 rule


@leo187um wrote:

Chase seems to have some good business credit cards but I will have to wait until July 2024 to become eligible to apply... 

 

Would it be better to go for Amex? Any other recommendations for biz cards with high limits 0pct APR periods to shoot for? Credit score is very good category.. 


For any business credit recommendations or questions, you may search for those particular topics or post in the Business Credit section of the forums.

Message 10 of 16
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