The Important Chase 5/24 Credit Card Rule – Beginner’s Guide

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I’m trying to revamp Romsdeals to put this important Chase 5/24 credit card rule throughout some of the older pages.  What is the Chase 5/24 credit card rule? Basically, If you’ve opened 5 or more new credit card accounts from any bank in the past 24 months (excluding authorized user accounts), you will NOT be approved for a Chase branded credit card.

Chase branded credit cards include the following:

  • Chase Sapphire Preferred
  • Chase Freedom
  • Chase Freedom Unlimited
  • Chase Ink Plus
  • Chase Ink Cash

However as of right now, Chase hotel and airline credit cards are not affected by this rule, but will be affected very soon, in the next month or so.  I would be conservative and say they will count towards the rule by the time you start applying and waiting.  These credit cards include:

  • Chase British Airways (high offer right now)
  • Chase Hyatt
  • Chase Marriott Personal(high offer right now) & Business
  • Chase United Mileageplus Personal & Business
  • Chase Southwest (all types)
  • Chase Ritz-Carlton
  • Chase IHG credit card (high offer right now)

Beginner’s 5/24 Strategy

So what is the main strategy if you are new to apply for credit cards?  You apply for the Chase branded credit cards first.  In the past, I generally recommended waiting 90 days between each credit card application phase. However, I’ve at times waited only a month or two if there was a great offer coming along.  If you are just starting out, I would not apply for more than two credit cards at a time and if you are applying for two credit cards at once make sure they are issued by different banks.

When thinking about an optimal strategy, you want to start with the best chase branded card.  This card would be the Chase Sapphire Preferred (55K bonus).  I’ll present two options, one option with other third party credit cards and another option without.  I would not apply for two Chase credit cards at the same time because the likelihood of being approved for both are slim. So for option 1 I would recommend:

  • Chase Sapphire Preferred + Third Party Card
  • Top third party cards I recommend now would be Barclaycard Arrival (40K points), Citicard AA Platinum Business (50K bonus), or Hilton HHonors AMEX Surpass or no fee version (100K/75K) Check Credit Card Deals for latest offers.
  • Wait 2-3 months then apply for Chase Freedom Unlimited or Chase Ink Plus or Chase Airline credit card (United or British Airways, depends on bonus) + another third party card.
  • Wait 2-3 months then apply for Chase Ink Plus or Freedom Unlimited

At this point, you would have maxed out 5 credit cards within 24 months and could not apply for any more Chase credit cards.  If you feel uncomfortable applying for a business credit card, I would apply for your favorite hotel or airline Chase credit card.  I would then start applying for third party cards or just take a break. If no third party credit cards appeal to you at the moment, then go with Option 2.

Option 2 (without third party cards)

  • Chase Sapphire Preferred
  • Wait 2-3 months, Chase Ink Plus or Chase Freedom Unlimited
  • Wait 2-3 months, Chase Ink Plus or Chase Freedom Unlimited or Chase Airline/Hotel credit card
  • Repeat, until you have 5 Chase credit cards and take a break or apply for third party credit cards.

The above might be a bit confusing, so I’ll wrap it up if you are just starting out. Apply for the Chase sapphire preferred first, with another third party credit card or not.  Then think about which Chase credit cards appeal to you the most. Everybody has different travel goals. For example, I like the Chase British Airways card because 50,000 Avios gets you two roundtrip tickets to Hawaii from the west coast. If you have a business (ebay or Craiglist business will count) then apply for the Chase Ink Plus.  Spread your applications at least 2 months apart, 3 to be safe. I would consider the Chase Freedom Unlimited because the current offer is 17,500 points and you get 1.5% UR points for each dollar spent. Once you have applied for 5 credit cards of any kind, then you can only apply for AMEX, Citibank, Barclaycard, BofA credit cards.  

If you have any questions about this important Chase 5/24 credit card rule, please ask below.  Thanks!


1 comment for “The Important Chase 5/24 Credit Card Rule – Beginner’s Guide

  1. JUAN
    April 12, 2016 at 2:57 am

    Why would business card appn’s have any bearing on your personal limit??

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