Building Your Personal Credit Card Strategy
Chase and the 5/24 Rule
If you've done any reading on opening credit cards to earn miles and points, you've probably heard of the Chase "5/24 rule".
It is important to understand this rule as you start opening cards so that you can make the most of travel points.
You need to open Chase cards early on in this hobby. That's why we typically recommend starting with the Chase Sapphire Preferred® Card. If you open too many cards from other banks quickly, you will be frozen out of opening any Chase cards until you qualify under 5/24 again.
What is the Chase 5/24 rule?
Chase is one of the most restrictive banks when it comes to card approvals. You will only be able to get approved for their cards if you have fewer than five new credit cards opened (from any issuer) in the past 24 months. This is known in the miles and points world as the Chase 5/24 rule.
Why does the Chase 5/24 rule matter?
The 5/24 rule matters because Chase offers some really good cards with really good bonuses, and you don't want to miss out on them!
If you're just getting started, you are probably wondering how you could possibly open five cards in 24 months — that seems crazy! Take it from us, once you learn how you can travel with points, it can get a bit addicting.
As you open new cards, you'll need to come up with a strategy to stay under 5/24 so that you can take advantage of Chase's great bonus offers. There's a good chance you're going to want Chase cards on your miles and points journey.
Chase issues a lot of cards. They have their own branded cards which earn Chase Ultimate Rewards points, such as the Chase Freedom Flex®, Chase Sapphire Preferred® Card, and the Chase Sapphire Reserve®. In addition, they issue co-branded cards for the following airlines and hotels (and more):
- United Airlines
- Southwest Airlines
- British Airways
- Hyatt Hotels
- Intercontinental Hotel Group (IHG — includes Holiday Inn, Kimpton, and many other brands)
- Marriott Hotels
Am I under 5/24?
The easiest way to check if you are "under 5/24" is to go through your credit report and count how many new accounts show up in the past 24 months.
Hopefully you got set up with Credit Karma and Experian already to look through your credit report.
What accounts does Chase count for 5/24?
- Personal credit cards (including retail store cards)
- Charge cards
- Authorized user cards (can be removed upon request)
- Most business cards (but note that some business cards from Capital One, TD Bank, and Discover do count)
- Mortgages
- Student loans
- Car loans
- Personal loans
People are often asking if a card counts for this, and the very basic rule is if a credit card account it is on your credit report, it counts. So look at your credit report to confirm.
Auto loans, mortgages, student loans, and personal loans will not be counted.
Business credit cards generally don't show on your personal credit report so if they don't show there, they don't add to your count — even business cards from Chase!
If you are an authorized user on an account, that will count. You may need to work to get authorized user accounts off your credit report to get under 5/24. More on that here.
What if I'm over 5/24?
If you're over 5/24 you will have to wait until you are under 5/24 to open any personal or business Chase cards. You may choose to continue to open cards from other issuers, or you may choose to take a break from opening cards until you are back under 5/24.
Want to go deeper on 5/24 strategy? Watch the podcast episode below for more tips on navigating the 5/24 rule and planning your applications around it.
