On May 24th (coincidentally, 5/24), Doctor of Credit announced that Chase’s dreaded 5/24 rule was now in place as of May 22nd or 23rd for most cards. Specifically, he said that the rule now applies to the following cards:
- Freedom and Freedom Unlimited
- Ink Plus and Ink Cash
- Marriott Rewards Premier (Personal and Business)
- Ritz Carlton Rewards (Maybe)
- Sapphire Preferred
- Slate
- Southwest Airlines Rapid Rewards Plus
- Southwest Airlines Rapid Rewards Premier (Personal and Business)
- United MileagePlus Explorer (Personal and Business)
- United MileagePlus Club
Interestingly, he states that the rule does not (yet?) apply to these co-branded cards:
- Amazon
- British Airways
- AARP
- Disney
- Fairmont
- Hyatt
- IHG
Is it real?
Based on the number of data points I’ve heard, I have no doubt that the 5/24 rule is real, but I believe that there are situations where it is not applied (more on that below). Whether or not the rule is now in effect for all of the cards listed by Doctor of Credit, I don’t know. I’m sure that we’ll hear many data points soon that will clarify which cards are, or are not, subject to the rule.
There is already at least one data point suggesting that the United card (the 50K targeted offer) might not be subject to the rule (yet):
@garyleff @Drofcredit @milestomemories @FrequentMiler @OneMileataTime Josh applied to UA today. Instant approval.
— Mommy Points (@Mommy_Points) May 25, 2016
As I’ll discuss further down in this post, though, there may be another explanation for Mommy Points’ husband’s instant approval.
What is the 5/24 rule and how do you know if you got caught by it?
In the past year or so, Chase has frequently denied applications for certain cards (Freedom, Sapphire Preferred, and Slate) due to having 5 or more new credit card accounts (with any bank) in the past 24 months. That means that anyone who regularly signs up for credit cards in order to earn points & miles is likely to be denied when they try to sign up for these cards. Now it appears that the rule applies to far more cards than before.
If you call reconsideration after a denial (which you should do because it can’t hurt), you may be told that your application was denied because you have opened 5 or more accounts in the past 24 months. If so, you’ve been caught by the 5/24 rule. Most who have been denied due to 5/24 have been unable to reverse the decision through reconsideration phone calls.
It’s important to note that Chase often denies applications for other, similar sounding reasons. For example, it is common to be told that you already have too many Chase cards. Or, you may be told that you have had too many recent credit inquiries. Neither of these explanations for denial is the same as the 5/24 rule. These are simply factors that influence Chase’s decision. And, importantly, applications denied for these reasons are frequently approved after reconsideration phone calls.
Breaking 5/24 (How to get approved anyway)
At this point, this is just conjecture based on a very limited number of data points. Hopefully, readers will help confirm or deny these assumptions…
Private Client
Many banks offer special privileges for high net worth clients. Chase’s version is called Chase Private Client. It’s like a bank’s version of elite status. Based on my admittedly very limited data, I believe that Private Client customers may be exempt from the 5/24 rule.
More details can be found here: Chase Private Client and Sapphire Preferred 65K.
Pre-Qualified Offers
If you receive a credit card offer from Chase that says you are pre-approved or pre-qualified, there is some evidence to suggest that you will not be subject to the 5/24 rule for that application. When you receive these offers via email or mail, the offer usually includes an invitation number and/or offer code. Make sure to use the number and/or code when applying.
You can also check for pre-qualified offers online: creditcards.chase.com/prequalified-offers.
Targeted Offers
This one goes even further into pure speculation than the two options shown above (Private Client and Pre-Qualified Offers). As shown above, yesterday Mommy Points reported that her husband was instantly approved for the United MileagePlus 50,000 mile offer. The current public offer for this card is 30,000 miles. He found the 50,000 point offer by signing into his United.com account. Since this offer is not shown to everyone who signs in to United.com, it is a targeted offer.
It is possible, of course, that the 5/24 rule is not yet being applied to United cards. However, I think it is even more likely that targeted offers are exempt from the rule.
Note: If you’re thinking of signing up for the United card, don’t forget to start the process of booking a paid flight first. This way you’ll get the same offer given upon logging in plus a $50 statement credit after first purchase. See: 8 ways to get the best Chase signup bonus offers.
Reader experiences?
Have you applied for any Chase cards since Monday, May 23rd? If so, which cards did you apply for and what was the result? Are you a Private Client? Did you use a pre-qualified offer or a targeted offer? Please comment below.
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[…] Breaking 5/24 […]
Let me know how it goes too that’s the price for the info;)
Yea bud it’s this one. Make sure once you click on it. You go into settings and open into desktop mode. Put in your info and bam. You got it. It’s works for my fiance to just went through like mine yesterday. https://www.chase.com/credit-cards/chase-online-access
I just successfully bypassed 5 / 24 rule with targeted offer on chases desktop website via smartphone. I’m at 8/24 I froze experian report before I submitted it. It worked instantly! 16% apr 15 k limit. To check your offer you must go into Google settings and hit desktop mode at home screen. Otherwise it will direct you to mobile version. I want people to know this does work! All the same rules still apply don’t be applying for 3 cards in the sane week and expect this to work. It probably wont. On the website left side bar it will say your offers with a green check by it if you have any. Click on it and you will see 1 to 3 targeted pre approved offer that will have fixed interest rates. Pick one put in your income and sit back and get ready to bypass 5/24. My info is 757 fico 8 trans 743 experian but I froze that one because of 12 hard pulls in 24 months. And equifax 735. For some reason my equifax just won’t rise. I have 2 years 6 months 1 year average age. No collections or missed payments. Hope this helps someone.
What is the URL for the site that showed you the “your offers” link? Thanks!
Hello,
I often received email from Mariott & Southwestern (i have frequent flier accounts) to apply for their credit cards with expiration date for the offer, is this what you call “targeted offer”? My hubby is at 9/24, recently denied for Chase Reserve, will the email offer circumvent the 5/24 if he applies for either Mariott or Southwestern?
I am at 5/24 with my recent approval for Chase Reserve, what are my chances of getting approved for either Mariott & Southwestern credit cards having received “targeted offer” from both? Can I apply for both as long as I wait out the timing of my application. I understand I can only apply for two cards with Chase within 30 days, so when can I apply for the 3rd one?
Thank you so much.
There have been some reports of people getting around 5/24 with targeted offers, but many reports to the contrary as well. Best bet is to get an offer that says you are “pre-approved”. Without that term, you’re probably stuck with 5/24. A good way to try to get pre-approved is to visit a Chase branch and ask them to check for you.
Do you get a hard pull if you denied under 5/24 ?
Yes
[…] There is no indication yet whether this will help break Chase’s infamous 5/24 rule. See: Breaking 5/24. […]
[…] this is all true, a 100K signup offer from Chase will be big news. If you can get around Chase’s 5/24 rules, or fly under them, and unless the minimum spend requirements are extraordinary, the card will be a […]
[…] Breaking 5/24 […]
How about the ones that have been opened and closed are they counted?
Unfortunately they are counted even when you close them. They stay on your report for 10 years after closing
I am confused about 5/24. Is it the number of applications in the last two years. Or is it the number of accounts opened in the past two years that remain open
5/24 has nothing to do with the number of applications — it is the number of new accounts opened.
I see “sub” written various times here. What does it mean? I can’t find a definition anywhere.
In order to subscribe so that you get emailed when people add comments to a particular page, you need to add a comment yourself and check the subscribe box. So, to subscribe, people often write “sub” or “subscribe” and check the box.
Thank so much! Mystery solved!
I applied for both the Mariott Business and United Explorer with the 70k offer this week. I’ve opened 8-9 CC’s in last two years. I got pending for both and called reconsideration. The gentleman approved me on the phone for the Marriott Business, but denied me for the United due to “Too many cards opened in the past two years”. I would say based on this the Marriott Business card is NOT under the 5/24 rule.
[…] Breaking 5/24 […]
[…] knocks the annual fee down to $45 the first year. I am clearly well over 5/24, but there is some evidence that targeted offers don’t count towards 5/24 and evidence of people being approved for this […]
I applied for a mariott card after being denied for a sapphire last month. I have applied for over 10 Plus cards in the past year. I just received an congratulations email!
I applied for the Chase Freedom Card two weeks ago and got a “further review” response upon applying. A few days later, I received a letter stating that I was declined because I had applied for too many credit cards in the past two years. When I called the reconsideration line, the agent told me that I had applied for nine cards over the past two years (which included non-Chase cards since I only hold five Chase cards). She told me specifically that they count all new applications, not only Chase applications.
That is true. 5/24 counts all cards, not just Chase cards.
FrequentMiler, can you provide me with a way we can communicate off the site privately? I have some information regarding a PPPM I think you may be interested in.
Important to note, because I had no idea this was the case when I started the credit card points game last year for hubby and myself — authorized user status also counts towards your 5/24 rule. I had been SO careful to alternate opening new accounts between us to keep both of us under 5 cards, but almost always put the other spouse on as an authorized user (faster to get to minimum spend if we both could use the card). I only found out those AU statuses count when I tried to open a Chase Sapphire for my husband in February and he was denied due to the 5/24 rule. He only had 3 accounts in his name, but was AU on several of mine, putting him over the limit. Curses! I’m now going to start the process of taking us off each other’s accts for cards we don’t use as often and see if I can get at least one of us back under the 5/24 range again.
p.s. I tried to get Sapphire and a United card at the same time (end of Feb), and was denied unequivocally for the Sapphire, but was allowed to move credit limits around on my other Chase cards to get the United card (my suggestion to the rep on the phone and it worked).
I have heard of cases where people were denied for this reason, but when they pointed out to the rep that half the cards were “Authorized User” cards and should not be counted in the total, the rep agreed with them and approved them. I would try again if I were you!
If you call in to add an authorized user, depending on the company, you don’t always have to provide a social security number for an authoized user account. This eliminates the inquiry problem.
It can help, but it doesn’t completely eliminate the problem. If the name of the person you add is already associated with you, via a shared address for example, the AU card will likely get added to their report even without SSN.
Did a personal United card tonight after reading Mommy Points, but went to pending and 7-10 day wait, so I will most likely be denied. I could have done it the end of April, but didn’t! Lesson learned.
I wouldn’t assume that pending means you’ll be denied. Will be interested to see how it turns out.
Just this week I opened a Chase Performance Business Checking account in branch under the current $500 signup promotion and was told I was pre-qualified for a second Chase Ink Plus business card. Of course I accepted it immediately for a second 60,000 point sign up bonus. I asked the banker how it was that I could have a second card, and she replied that if any of the card’s terms change, a second signup is possible.
That is definitely true. Was your app approved?
I just got an email for Marriot Primier Personal of 40,000 + $200 after $3000 spending. Do you think I have a shot? This should be a targeted offer, right?
I think you have a shot, but it’s really just a theory. We need more data points.
Received targeted email offer today for the Marriott, 40K with $200 statement credit. Way, way over 5/24.
Me too. I am wondering if we’d get it
sub
Went in-branch today and applied for the 70k offer, which I was pre-qualified for, and was denied due to too many recent credit cards (i.e. breaking the 5/24 rule). I have had 15+ in the past 24 months.
My banker made a phone call and was told that there is no process to reverse or reconsider this type of decision. He then advised calling in for reconsideration once I receive the denial letter… my hopes are far from high…
Well, there goes the pre-qualified hypothesis…
Thanks for that data point.
Applied for Chase Marriott Bus for wife and I. Both have gotten 10+ cards in past few years. I was pending, she was approved. I think my issue was that my income was listed too high and they wanted to have someone review before they gave me too large of a credit limit.
[…] Frequentmiler speculates that these offers may not have the 5/24 limitation. […]
Thanks for this post. Lots of good food for thought.
@Farnorthtrader I had a similar experience w/ Chase over IHG but instead of being outright denied, I was told Chase had to reduce its credit exposure across all the cards I had and could accept the reduction of overall credit with an IHG approval for a small line or keep status quo. Was tempted to hang up but feared the loan officer might institute the changes anyway.
@Greg The Frequent Miler thanks for the link to screened offers. I happened to logon to my Marriott account and moments later rec’d an e-mail offering me a credit card (w/ a small bonus). Coincidence? This offer doesn’t appear when I use the screened offer link you provided.
[…] 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 […]
Maybe I got in right before it took effect, but I applied for the United personal 50k targeted offer on 05/19. It was initially pending, but the next day I sent a secure message to request shifting credit from another card and was approved. Also, not a Private Client.
Thanks. Yes, 5/19 was before the United card may have been subject to 5/24.
I have an interesting data point about calling the recon line.
When I applied for the freedom unlimited 2 days after it became available, I was put in the “further review state”. The next day I called the automated line to check the status (different than the recon line) and was told that it was still needing further review. Immediately after hearing this (literally 10 seconds), I called the recon line. When the person answered they said that I had been declined for too many cards in the last 24 months. I just find it interesting that the moment I called the recon line my status went from pending to declined.
Interesting. I don’t know if that was a coincidence or if your call somehow prodded the decision along. The latter seems unlikely to me, but you never know.
I think the card was likely declined already but they didn’t update the other message because they prefer to send it via mail.
Sub
On Monday I applied for the Marriott business card. It was my first chase card in 6+ months, and my first chase business card in 2 years. I’ve had 24 new cards in the last 24 months, and probably 18-20 hard pulls. Initially it went pending, but then yesterday I got an email saying the card was on its way and showing the last 4 digits. It hasn’t shown up in my account yet, so I’m patiently waiting for that card before I consider it a victory.
I would call that a victory. I’ve never heard of anyone getting an email saying a card is on its way and also getting denied.
Similar story here, card arrived
I applied for an ink plus mailed targeted offer went to pending we shall see what happens
I keep reading receiving offers for a Chase Ink Plus card in mail for my business, even though I already have one. Do you think they would approve it if I apply with the offer code and would have the 5/24 rule in effect?
Well, I think it is unlikely that you will be denied due to 5/24, but you could be denied for other reasons. If you have a second business, it’s probably worth a shot.
The strange thing is that the offer keeps being sent in the name of the business for which I already have an account. With all of the information Chase has already on me, I’m surprised they don’t know that I already have an Ink Plus card for this business.
Same thing here. I keep getting Ink pre-approved offers in the mail for the business that I already have an Ink for. I wonder if I can close the Ink I have open now and use the targeted offer code to reapply with the bonus.?? There is no language about the bonus only being available if no bonus in the last 24 months either.
Their marketing department doesn’t necessarily know if you are an account-holder or not. I get these all the time despite having 2 Inks for one business.
I had an Ink Bold (charge) card and applied for an Ink Plus (credit) card and was assuming I would just drop the old Inkand get the new one (and 60K points as a new bonus). They just approved the new one and so now I have two.
And a third for a separate business. And my wife has one for the same business … 4 in all.
Be careful about talking in absolutes when dealing with people. I was denied an IHG card last year because, they told me on the phone, I had too many new accounts in the last 24 months. Sounds like the 5/24 rule was applied to my application, except that it did not apply to IHG cards at all. Chase reps (and I believe most reps) will grab whatever reason that strikes their fancy and will get you off the phone. Therefore, the theory that 5/24 now applies to the additional cards cannot be proven by cases where it was applied (because that makes it a reason, not a rule) but can only be disproven by cases where it does not apply, such as mommy points case. I have considerable doubts about this being more broadly applied, since DoC appears to have gotten the info from the same source that told everyone that 5/24 was going to be applied in March and April.
It was a difference source. First post was from Chuck’s source, this is from mine that provided accurate information regarding Chase FU. Also, internal timelines often aren’t met. Maybe they wanted to apply 5/24 in March/April and couldn’t for whatever reason? I mean, Chase officially said they wanted chip & PIN on all their cards by end of 2014 so it certainly wouldn’t be the first time they had missed a deadline.
What I find interesting is there have been multiple people that have applied for two cards, one from the first list and one from the second list. They got pending messages for the cards we suspect hit 5/24 and auto approval for the cards we suspect don’t have that rule applied to them (and this has happened regardless of what order they applied in).
Not saying we are 100% right, but looks to me that way at the moment and that’s why I posted. I actually held back the information a few days and then other people started to notice it independently just based on the DPs.
There’s no doubt that its hard to know for certain what’s going on. As you pointed out, reps often like to give a reason for denial even if they don’t know the exact reason, so we can easily get false positives from some reported results. Still, it’s worth drawing tentative conclusions based on a preponderance of evidence.