While there’s nothing official, anecdotally it would appear that Chase is no longer consistently enforcing the 5/24 rule since around April 2023. I wanted to post a reminder of this, both for those who may not be aware, and also to get additional data points from those who are over the limit and apply for a card.
In this post:
Chase approvals despite being over 5/24 limit
All major credit card issuers have rules when it comes to approving people for cards, intended to maximize profitability and reduce risk. Some of these rules are published, while others aren’t.
Probably the single most well known such policy is the Chase 5/24 rule, whereby Chase typically won’t approve you for a card if you’ve opened five or more new card accounts in the past 24 months (there are some exclusions, so read my guide to the Chase 5/24 rule if you’re not familiar with it).
For several years, Chase was for the most part pretty strict about this, to the point that there was no point in applying for a Chase card if you were over the limit. However, that seemed to change earlier this year.
There are quite a few data points online of people being approved for popular Chase cards despite being over the 5/24 limit (and these aren’t people who are confused about what the limit is). These data points are for cards like the Chase Sapphire Preferred® Card (review), Chase Sapphire Reserve® (review), Ink Business Preferred® Credit Card (review), Ink Business Cash® Credit Card (review), and Ink Business Unlimited® Credit Card (review).
This is potentially pretty exciting. Let me of course emphasize that there are also lots of data points of people over the 5/24 limit being rejected, which may be because of the 5/24 rule, or may be because of something else. After all, there are lots of reasons an issuer may not want to approve you for a new card.
I think this is at least something worth being aware of. It’s anyone’s guess what exactly is going on here. Has Chase actually eliminated the rule, or modified it somehow? Is Chase doing some sort of testing on the 5/24 rule to determine the profitability of customers over the limit rather than under the limit? There are more questions than answers…
Is it worth applying for a Chase card if you’re over the 5/24 limit?
What exactly should you do with this information? Some people are getting approved for Chase cards in spite of being over the 5/24 limit, though we don’t know why, exactly. Everyone has to decide for themselves what to do based on their own credit profile, situation, and risk tolerance for rejection. I’ve written in the past about the impact of credit card denials on your credit score.
Personally I’ll gladly speculatively apply for a credit card, even if I’m not sure I’ll get approved (for example, I recently got rejected for a card). What’s my logic?
- Generally speaking, the only negative impact on your credit report of a denial is that you have an additional inquiry, and that might temporarily ding your score a few points
- Assuming you have an excellent credit score (mine is 830+), a few points won’t make a material difference
- Meanwhile the potential upside from a new credit card can be huge, in terms of the sign-up bonus, additional points from spending, and perks
If I were in the position of having an excellent credit score, being over 5/24 (but not by a ton), and wanting to pick up a Chase card, I’d definitely consider applying, given the big upside and limited downside. But admittedly everyone has a different risk tolerance and take on that, and there’s no right or wrong answer.
The 5/24 rule is one of the biggest restrictions when it comes to getting approved for Chase cards. While it has been a pretty consistent rule for the past several years, reports suggest that this was loosened as of earlier in 2023. That’s not a guarantee that anyone will get approved, but I do think it’s a data point worth being aware of.
If you’re over the 5/24 limit and end up applying for a Chase card, please share your experience!