Chase May Have Just Expanded The 5/24 Rule

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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.

The three most popular cards that haven’t been subject to this rule are The World of Hyatt Credit CardThe IHG® Rewards Club Premier Credit Card, and The British Airways Visa Signature® Card.

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 because people are getting denials on these cards for having too many inquiries in the last 24 months.

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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!

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Comments

  1. Uh, if what you wrote is correct and this is all about people being denied for too many inquiries, then it has nothing to do with the 5/24 rule. That rule says nothing about inquiries, only new accounts.

  2. Lucky – I’m way over the 5/24 requirement and I just got this card approved Monday morning. So unless they changed it in the last two days, I think it’s too early to tell. I would say this is one to keep an eye on, but that it hasn’t officially started.

  3. So, @Lucky, ur not gonna point out that United just announced routes from Newark to Europe on its 787-10s??????

  4. I highly doubt you would be denied for just “too many inquiries” as this would be a bad business decision on Chase’s part and could lead to lost revenue.

    There could be some substance that Chase is denying consumers due to too many revolving account inquiries though. Even than, with the current trend of utilizing soft type inquiries to pre-qual for even revolving accounts, this wouldn’t be an optimal way of “weeding” out the undesirables.

    Possible but not financially smart or even a good way to approve/deny as application.

  5. @Mishas – every time you apply for credit, a loan, or to borrow money an inquiry is put on your credit report. Hard inquiries can be seen by anyone looking at your credit, soft inquiries can only be seen when a consumer looks at their own report.

    If not for credit cards it could be for: auto loan, mortgage, to rent an apartment, personal loan, student loan, etc.

  6. @ Happypoppeye — Personally I don’t for a second deny Chase’s math. No bank is always going to get everything right, but acquisition costs for credit card customers are HUGE, and I’m generally confident their math is right when it comes to segmenting the market pretty well. Just my take.

  7. @ Joe Caldwell — Thanks for the data point! Some suggested this was just introduced today or yesterday, but that’s a useful data point.

  8. @ Mishas — It does mean too many applications for new credit. The point is that even beyond the 5/24 rule, some people got denied for just generally having too many cards/applications, though that was based on more factors.

  9. Chase has been dead to me for a while anyway, but I was going to get the Hyatt card, so we’ll see what develops…

  10. Makes more sense to get the World of Hyatt card in January so the sign up bonus minimum spend credits toward that year’s $15k spend certificate. If Chase did just restrict access, the timing is pretty bad. I wonder what Hyatt thinks about their banking partner imposing 5/24 restriction and offering a measly 2k points for upgrade, while the Hilton Amex’s are wide open with enhanced sign-up and spend offers.

  11. 5/24 is based on new CC accounts, NOT inquiries. These are two separate things. Getting denied by Chase for “too many inquiries” is not new at all, nor is it related to an expansion of 5/24.

    @Mishas – inquires can be for many things. Also, one can have new personal CC accounts without a new inquiry, as happens for many of us with Amex (which may grant new accounts without a hard pull for some existing customers).

  12. I recently applied for and received the Hyatt card within last two weeks. I was called by the credit card dept. before they approved as I have 4 Chase cards within last 2 years so not over 5/24. Basically I just told them I didn’t need additional credit line and we just shifted credit line from other Chase cards. That was their concern. Was verbally approved over phone.

  13. I applied for the Hyatt cc last Friday and am waiting to see if I’ll be approved. This is the first time I haven’t received instant approval ever for a cc and I’m 9/24 with this application. I did close a Chase card before I applied for the Hyatt cc since I was not using my SWA cc at all and the annual fee had just been charged. I’m keeping my fingers crossed I get approved.

  14. besides 5/24, I think every once in a while Chase’s internal risk assessment denies people for too many inquires. In 2016 i applied for the British and Hyatt Cards four months apart. I got the British but was denied for the Hyatt and this is with great credit Fico 800s, below 10% utilization etc.

    Reason given was “i had 9 inquiries on my experian in the last 24 months. I HUCAed and the 2nd person said I just called and it was denied because of too many inquiries. Some of those inquiries were for business accounts so I said I actually only have 6 new accounts is that the reason why? and I was told no its because of too many inquiries. I was asked why I was applying for so many accounts.

    When the denial letter came I called the number on the back and this time the person reviewed it and approved it. I don’t know why but I think the reconsideration dept has been denying based on inquires.

  15. I was just approved for the Hyatt card at 9/24 last week, so unless the change occurred in the past two days this may be a false alarm.

  16. How does Chase/Amex/?? treat applications for new credit cards by spouses? Does your spouse have their own 5/24 limit independent on the other spouse’s credit report and card counts?

  17. I just applied for the world of Hyatt card and I also got a call about the available revolving that I had on my chase cards

  18. I just applied for the world of Hyatt card after closing my old Hyatt card last month with the plan of reapplying for a second bonus. I was just told that my application rejected because of too many accounts opened in the last 2 years. Not inquiries, but accounts.

  19. Hubby just got approved for Chase Iberia card and he’s WAY over 5/24. He applied 10/30 and they said they needed to review. They moved around some credit & approved a few days later.

  20. I applied for the Hyatt card 2 weeks ago and was wait listed. I was approved last week and am way over 5/24 cap….I do spend a lot of money on Chase cards and do all of my personal banking/savings there though.

  21. I think the time of simple rules like 5/24 is coming to an end: banks have better systems and more data to fine tune the rules and whom they accept: income, applications, spend patterns, bonuses…
    Data points like ” I got a pproved and have more than 5/24″ will be less valuable …

  22. Datapoints for applications submitted prior to 11/13 are useless.
    It is suspected the 5/24 rule was expanded to the Hyatt card (and possibly other co-branded Chase cards) around 11/13.

  23. For what its worth, I recently got denied for aer lingus card and when I called reconsideration was told “too many cards in last two years”. Sounded like 5/24 though she didn’t specifically say that.

  24. Just denied for Freedom Unlimited for being over 5/24 – and that was noted directly in denial letter. Two of the 5 are in fact Hyatt cards (one shared with spouse).

  25. @Lucky – Despite being at 7/24, I applied for Chase Freedom on Nov 5. I knew I was over 5/24 but I went ahead and applied because I didn’t want to wait until I was under 5/24. To my surprise, I was approved on Nov 7. Now that I have all the UR personal cards from Chase, I can move on to Amex.

  26. Earlier this year I applied for the Chase United Explorer card. I had some major expenses coming up and this would be a good way to add to my United miles. They declined me citing the 5/24 rule. So I applied at Citibank for their AAdvantage card, which I had not had for about 3 years. Approval came right away, so I added the 50,000 mile bonus and about $10,000 in spend on my new Citicard. Plus I booked an international RT flight for 75,000 miles and because I used my AAdvantage card to pay the taxes and fees, I received a 10% (7,500 miles) mileage credit so my ticket only cost me 67,500 miles.

    Chase’s 5/24 rule is STUPID. How much other business has Chase lost because they drove good customers to some other bank ?? Whoever came up with this 5/24 rule SHOULD BE FIRED !! Hey, Jamie Dimon, you reading this ?? I hope you find the IDIOT who came up with this “rule”.

  27. They should at least have a waiver window for new card offers, exempting them, say, for a year from introduction. For example, I had some Chase cards and then added the Citi Prestige because at the time Chase did not have a similar ‘premium’ product. Then when Chase brought the CSR with its big initial bonus, I could not apply and missed it because of the 5/24 rule. The market and product lines change, and Chase should make some allowance for that.

  28. Chase just isn’t worth the hassle. I have stellar credit and don’t like jumping through hoops to satisfy them. Moved my spending to Citibank.

  29. I just got turned down for the Chase Aer Lingus card. After being told by the app site that my application was under review I call to ask if there was any more information they needed. After some checking by the person at Chase I was told that my application was declined due to too many cards in the last 24 months.

    Oh, well. I’ll still have 160+K Avios from BA and Iberia. (I was aiming for 250K.) And we have my wife on a card diet so she can become our Chase card collector.

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