Analyzing New 5/24 Rules – What We Know
The other day I wrote a post looking at the data behind the so called 5/24 rule. This rule basically says that Chase will deny you automatically if you have opened 5 or more accounts across all banks within the past 24 months. At the time I felt comfortable with my assertion that this rule isn’t in place across the board for all people. Some people are approved with more than 5 accounts and some denied with less.
Up until a few days ago the rule was supposedly only in place for Chase branded cards excluding the Ink Business cards. On May 24, Doctor of Credit quoted a source saying that the 5/24 rule was in effect for many more cards as of May 22.
According to the DoC post, here are the cards now under the 5/24 rule:
- Chase branded cards such as Freedom, Slate & Sapphire Preferred
- Chase Ink Business Cards
- All Marriott Co-branded cards
- United Co-branded cards
- Southwest Co-branded cards
The following cards are thought to not be under the 5/24 rule:
- IHG Rewards Club
- Hyatt
- British Airways
- Disney
- Amazon
- AARP
- Fairmont
Looking at the Data
Since Doctor of Credit’s post, many people have rushed in to share their data points both in the comments on the original post and on Reddit. (Doctor of Credit is doing a great job of organizing data points.) Since I know it can be a lot to sort through, I thought it was time for me to chime in to share with you guys what people are reporting.
While there is still limited data, here are a few things that I have been able to tell by reading through everything:
- IHG, Hyatt, British Airways & Fairmont definitely aren’t the 5/24 rule. There are numerous data points of approvals on both the Doctor of Credit post and Reddit.
- There is at least one data point each confirming an approval with more than 5/24 on the Southwest, United & Marriott cards.
- There are some data points of people being denied for too many new accounts, although this isn’t anything new with Chase even on these co-branded cards.
- There are a couple of data points of people applying for one card on the 5/24 list and one not on the 5/24 list and being instantly approved for the non-5/24 card, but pending on the 5/24 card.
- We know that people with Chase Private Client and targeted offers have also been able to get around 5/24. Frequent Miler has a good post describing the ways to get around 5/24.
So as of now we have data points going both ways regarding the 5/24 rule. It does seem like Chase may have tightened approvals, but just as before based on the data it seemingly isn’t being applied across the board.
Takeaways
As of now it is too early to tell if Chase really has a hard 5/24 rule on these cards or if they have simply tightened. I’ll let you sort through the data and make up your own mind, but I am doubtful that this rule is being enforced 100% of the time. With that said, Chase has definitely tightened over the past year and it wouldn’t surprise me to see them tighten even more going forward.
What do you think based on the data? Feel free to share your thoughts and data points in the comments.
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[…] fee. You can find 4 flights from Detroit to Orlando for under 60,000 points. You must be under 5/24 to get this card though and that is why it is the secondary […]
[…] If you have a lot of expenses which fall into the broad travel category (gas, tolls, trains, public transport, parking etc.) then this could be a long term keeper. A 3.75% return on these expenses is one of the better returns out there. This may be an option for people unable to get the Chase Sapphire Reserve card because of Chase’s 5/24 rule. […]
[…] On Friday Chuck at DoctorofCredit wrote a post asking for data points on recent Barclaycard applications. It has been speculated that Barclaycard may be implementing some new anti-churning rules….possibly similar to Chase’s 5/24 rule. […]
I applied for the Sapphire on May 21 and was denied. Too many accounts and I only had 4 new accounts in the last 24 months. Although I was added as an authorized user on two of my husbands accounts. I walked into a Chase branch and spoke to a bank representative and asked if it was possible to get the card through a re-consideration. She entered my info and I was approved immediately. Yahoo!
Shawn, do you know if converting an annual fee card (like Chase Sapphire Preferred and Citi Thank you Premier) to a no annual fee card counts as opening a new card that will be impacted by the 5/24 rule? I was thinking about converting (if allowed) when the annual fee kicks in but if it counts against me in the 5/24 rule, I will probably close the cards instead.
It shouldn’t have an effect on 5/24 since the credit report doesn’t reflect the type of card, but simply the account information. By converting from one type of card to another, you generally keep the account in tact so it doesn’t show as a new account.
I applied for the Southwest card last week and still have not heard back so I am worried. Does the 5/24 rule count for all cards opened even if they aren’t bank cards? I only have a couple credit cards… but I have a handful of cards with specific stores (Belk, Maurices, Catos, etc.) but those cards are store only cards. DO they count that as well? If so, that’s frustrating.
[…] of you know about the Chase 5/24 rule and I have covered the rumors of its recent expansion. At this point we don’t know how it affects all cards, but if you […]
I applied for the Chase Sapphire this morning and got the “application under further review” message. I called back this evening and was told that I had too many credit cards recently and there was not enough history to for them to approve the card. This is a bunch of crap. My score is over 800, I have always had perfect credit. I have cancelled some cards that had some high annual fees and I wasn’t benefitting from. Is there any use in calling back and trying to talk to someone else or is it officially denied?
Applied for Freedom, Sapphire preferred, slate, ihg, and Hyatt in one sitting.
Hyatt and IHG were both approved instantly with healthy limits. Others were declined even after multi recon.
Waited 30 days after initial apply date and was instant approved for Slate with yet another healthy limit. I then shifted the line around by calling and within a minute it was all taken care of.
Rules are definitely tighter and when it comes to recon, they are sticking to the max 2 cards opened in 30 days and no more than 5/24. To each their own though on app success!
[…] card approval process, and won’t approve someone for these two credit cards based on the 5/24 rule as outlined by MilestoMemories, which is five new credit cards (from any bank) in the past 24 […]
I was instantly approved for the Hyatt card, and then got approved for the Marriott Business today after talking to a rep on the phone and answering quite a few questions. I’ve gotten 9 new credit cards just in the past 12 months, and two of those were Chase.
Thanks for sharing this data point!
Isn’t this a two-way street? I mean, don’t the boys and girls at United Airlines get upset when Chase rejects otherwise creditworthy applicants who took too much advantage of AA sign-up boni these last couple years?
Husband and I both approved for the Chase Marriott cards with more than 5/24. He had been mailed a targeted offer, I had not.
Thanks for sharing. When did you apply?
I opened 5 cards between 3/2015 and 11/2015–none from Chase. I opened a sapphire 02/2016 and a United card 05/2016.
Thanks for sharing these data points!
All Marriott cards are not included in 5/24.
I was denied an Ink card last month and the 5/24 reason was cited. Approved for 100K Marriott Business card on Monday 5/23.
Thanks for sharing.