All of the card issuers have different ways that they deal with people trying to “game” the system. Obviously, card issuers want to encourage profitable behavior, so they do what they can to create policies that maximize the odds of that. There’s no doubt that by adding these restrictions they’re missing out on some potentially profitable customers, though there’s a balance there.
Chase’s 5/24 rule
One of Chase’s restrictions is commonly referred to as the 5/24 rule, whereby Chase won’t approve you for many of their products if you’ve opened five or more new card accounts in the past 24 months.
Up until now, this rule hasn’t applied to all Chase cards. While it has applied to cards like the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® Card, it hasn’t applied to some of Chase’s co-branded credit cards.
Has Chase just expanded this rule to all cards?
In June I wrote about how a Chase executive indicated that the bank was planning on eventually expanding this rule to all cards. We didn’t have a timeline with which that would happen. Well, that time may just be now.
There are lots of data points suggesting that this is the case, in particular on The World of Hyatt Credit Card. While I think there are good odds that this is in fact the case, I wouldn’t take it as a sure bet yet.
The reason people assume the rule has spread is that people are getting denials on these cards for having too many inquiries in the last 24 months.
However, there’s an important distinction to be made — that doesn’t necessarily mean that the denial is specifically due to the 5/24 rule. You can also get denied for too many inquiries completely unrelated to the 5/24 rule.
I probably get a couple of emails per week from people saying “the 5/24 rule has spread, I got denied for too many inquiries.” That goes back a lot further than this week.
So, for now, I’d mark this as “developing,” both regarding whether or not this has spread, and if so, which cards exactly it has spread to.
But if you have any data points, please do share them!