Picture this: You’re sitting at your laptop, staring at what feels like the 957th tempting credit card offer to hit your inbox this year. Massive sign-up bonuses, eye-popping rewards, and travel perks that practically beg you to say yes. You’re no stranger to applying for plastic, but suddenly, words like “5 24 rule” pop up everywhere you look—blog comments, Reddit threads, even TikTok finance influencers rant about it. But what is it, really? And why does it trip up so many smart, responsible adults?
If you’ve ever been unexpectedly denied for a shiny new credit card, especially from Chase, there’s a good chance the 5 24 rule is to blame. It’s not some secret society handshake—just a firm but clever rule that acts like a doorman at an exclusive club. Get ready to see what goes on behind that velvet rope, because it’s definitely changed the credit card game for millions, including Aussies and Americans alike. Let’s untangle what it means and how you can make it work for you—not against you.
How the 5 24 Rule Works—And Why It Exists
The 5 24 rule, in short, says you’ll probably get denied for most Chase-branded credit cards if you’ve opened five or more new personal credit cards (from any bank) in the past 24 months. Doesn’t matter if those cards are closed or have zero balances; if they show on your credit report as new accounts, they count. And yes, store cards, co-branded cards (like Starbucks or Qantas), and even cards you hardly use can tip you over the edge.
What’s wild is, this isn’t some ancient bank policy—Chase quietly rolled it out around 2015. Why? Turns out, people chasing juicy welcome bonuses would open cards fast, burn through bonuses, and ditch them. Chase got wise, put their foot down, and the 5 24 rule was born. Now, it’s become one of the most talked-about rules in the credit world, especially for anyone who loves rewards or travel points. Even if you’re based outside the US, as so many expats in Australia are, the idea is picking up steam internationally.
- If you open five or more cards in two years (24 months), your application for most new Chase cards will automatically get flagged or denied.
- This applies to personal cards—business cards sometimes dodge the rule if they aren’t reported to personal credit. Yes, that’s a trick many point-chasers use.
- Poor timing is a big deal. If a card was approved just 23 months ago, it still counts; wait another month, and you might sail through.
Chase isn’t the only bank with tough rules, but the 5 24 rule is easily the most notorious. Unlike vague “creditworthiness assessments,” this one’s cold, hard math. If you’ve been on credit forums, you’ll see people tracking their personal 5 24 counts like countdown clocks, just to time that next application perfectly.
Cards and Applications That Count—and a Few That Don’t
This is where things get dicey. Not every card you open or close will count against you, but plenty of them will. Let’s break it down, because the details can trip up even finance nerds.
- Personal credit cards count—no matter which bank issues them. AmEx, Citi, ANZ, Westpac, or that oddball department store card you forgot about, they’re in the tally.
- Authorized user cards, which a friend or loved one adds you to, usually count, too. Frustrating, right? Most of the time, that account lands on your credit report as if it’s truly yours.
- Personal line of credit accounts, like some buy-now-pay-later or overdraft products, flop into a grey area. If they show as a revolving loan, they just might count.
- Business credit cards: If you applied using your personal info, like with American Express business cards, they might escape notice if the card issuer doesn’t report them to personal credit bureaus. Chase-branded business cards usually don’t count, but business cards from other banks sometimes do. It gets confusing, so double-check which bureau your new card reports to.
- Loans (car, mortgage, personal) aren’t counted under the 5 24 rule. The banks know you need credit beyond just plastic.
Now, here’s a sneaky tip: some retail cards, especially “closed-loop” ones only usable in one shop, might not appear on your main file with Equifax or Experian (that’s the US, TransUnion in Australia). Don’t bet your application on it, though—credit files between countries don’t always match, and rule changes happen without warning.
Banks check new accounts opening dates, so “hard inquiries” by themselves (those pings you get just for applying) won’t boot you over the limit if no account opened. But if the card shows as active, you’re one closer to the 5. The devil’s in the details.
Here’s a quick stat from 2024: on US forums like Doctor of Credit, nearly 70% of rejected Chase applications for “excellent” credit users came down to the 5 24 rule—not late payments or low scores. Surprising how ruthlessly consistent this rule is.
Navigating the 5 24 Rule: Hacks, Waiting Games, and Mistakes to Avoid
If your number is creeping up to five, you have to play it smart. There are a few tricks, but also common missteps that’ll leave you shouting at your laptop.
- Always check your open account history before applying for any new Chase card. Services like Credit Karma and Experian (or GetCreditScore.com.au for Aussies) can help you see new accounts lined up by date. Double count if you’re unsure.
- Strategize your applications—if you want a card with a fat welcome bonus or one of Chase’s coveted travel cards (think Sapphire Preferred), make those a priority while you’re under 5 24. Apply for other cards after you get approved from Chase, not before.
- Don’t assume closing old cards fixes your count. The rule is about cards opened, not cards open now. The two-year window starts from the approval date, not close date.
- If you’re at 5 24 and one “account” is from being an authorized user you never really used, you can ask Chase (over the phone—they still use real humans for approvals at times) to reconsider. Sometimes, they’ll overlook that card for you. Not a guarantee, but it’s worked for many.
- If you’re eying business cards, double-check if the card issuer reports new accounts to personal credit or not. Chase itself almost never adds their own business cards to your personal file, so you can wiggle around the rule with those.
- Set phone reminders for anniversary dates—once one of your five-old cards ages out to 25 months, you’re eligible again for Chase cards. It feels silly, but people have literally set Google Calendar alerts to plan their next application day precisely. That’s how strict this rule is.
Don’t forget: “reconsideration” lines are a real thing. If you’re denied, call the bank and ask a rep to review your account. Sometimes, a human will spot an error or give an override. It takes guts but has worked, especially for responsible spenders with steady income.
One really important warning: don’t apply just for the sake of it or because peer pressure in forums makes “churning” look glamorous. The cost to your credit score, the potential for rejected applications showing on your report, and the time stress—these stack up. If points and rewards are worth it to you, plan ahead, but don’t get caught up in the hype train.
5 24 Rule in Action: Real-World Stories and What Happens If You Ignore It
Every year, more stories hit social media about wannabe jet-setters or cashback hunters getting hit with “application denied: too many accounts opened.” For many living in global cities like Sydney or Melbourne with expat ties to the States, the rule can be a nasty wake-up call, usually mid-application. I know of one reader—let’s call her Sam—who lost out on a $700 bonus because she applied for a store card at the wrong time before going for a Chase Sapphire Preferred. That harmless Target card nixed her 5 24 status by days, all because of a last-minute home appliance purchase. Painful lesson.
Here’s where it gets trickier: if you ignore the rule and keep applying “just to try,” each rejection leaves a “hard inquiry” on your report. Enough of those, and your credit score will dip—sometimes by 2–5 points per rejection, based on real-world data. Not huge individually, but add up a streak of denials, and suddenly a future car loan or mortgage could cost more. The big banks share this data, and algorithms flag those with aggressive application histories.
One survey by The Points Guy in 2023 found people with four or fewer new cards in two years got approved at a whopping 93% rate for premium Chase cards. Hit five or more? Only 12% squeaked through as “exceptions.” Those aren’t odds you want to play.
| Number of New Cards (24 months) | Approval Rate (Chase Premium Cards) |
|---|---|
| 0-4 | 93% |
| 5+ | 12% |
Still, the rule isn’t perfect. Some users report random exceptions—like a “pre-approved” mail offer that somehow bypasses the 5 24 filter, or a lucky phone rep who makes an exception. But these are becoming rare. The bank wants to lock in loyal, low-risk customers, not serial churners.
Can you ask the rule to be waived? Not officially—Chase won’t budge for most. Sometimes, a long-term banking relationship or significant assets at Chase push them to reconsider, but it’s a unicorn scenario. If you’re lucky enough to get such treatment, you already know it. For everyone else? Watch that 24-month calendar like a hawk.
What about losing out on points or perks? You can still score rewards from other banks, but the 5 24 rule’s effect on the credit landscape means many rivals quietly follow suit, adding stricter rules or bonus limits of their own. AmEx, for example, introduced lifetime bonus restrictions in Australia starting April 2024. The game keeps evolving.
If you move between countries, cards you open in Aussie banks don’t count towards your US 5 24 tally—and vice versa. That’s why many dual citizens or digital nomads split their application strategies by country. Smart, if a bit obsessive!
The thing to remember: the 5 24 rule was never meant to keep responsible, everyday spenders from getting value. It’s designed to slow down the points fiends and high-volume churners. The best move is to stay informed, time your applications, and always have a clear plan for what rewards actually matter to you.