The Chase 5/24 Rule: How Opening And Closing Credit Cards Can Backfire (2023)

FAQs

Is there a way around Chase 5 24 rule? ›

If you're at a Chase branch and told (without prompting) that you have been pre-approved for a credit card, you may be able to get approved in branch, thus getting around 5/24. Some data points also suggest submitting a paper credit card application in a branch location may also bypass 5/24.

Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

Chase doesn't have a hard limit on the number of cards you can have at once. Instead, there's a maximum amount of total credit they'll extend you. Some of us on the MMS team have six or more Chase credit cards.

Understanding the Chase 2/30 rule:

Chase business cards don't count towards 5/24. But they do count towards this rule: Apply for a third Chase card of any kind within 30 days, and you'll be declined. Don't worry, as long as you keep your cards up to date, we'll keep track and warn you if the rule is tripped.

Chase's 5/24 rule is probably the best-known credit card application restriction. If you have taken out more than five new credit cards in the past 24 months—whether they're Chase credit cards or cards from another issuer—Chase will generally not accept you for a new credit card.

If your card has an annual fee, there's generally no reason to cancel early. Instead, wait until the annual fee posts to your card's account or just before. Most banks and credit card companies have a grace period of at least 30 days where you can cancel the card and still get the annual fee refunded.

Credit experts advise against closing credit cards, even when you're not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it,” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.

Does AmEx have a 5/24 rule? No; in fact, the AmEx welcome bonus rules work differently than Chase.

Application Rules

You're limited to 1 approved credit card every 5-day rolling period and 2 approved credit cards every 90 day rolling period. This rule only applies to credit cards and not their charge cards.

Chase generally limits credit card approvals to two Chase credit cards per rolling 30-day period. Data points conflict on this but a safe bet is to apply for no more than two personal Chase credit cards or one personal and one business Chase credit card every 30 days.

What is the Chase One Sapphire rule? ›

“One Sapphire Rule”

You cannot apply and get approved for a Sapphire card if you currently have an open one. You can have an open Chase Sapphire Reserve, Chase Sapphire Preferred® Card, OR a Chase Sapphire card, but not more than one at a time.

Advantages of having multiple credit cards

Low credit utilization ratio: Having more than one credit card can boost your credit score by helping to lower your credit utilization ratio.

This is a relatively new Chase rule, but an important one: You cannot receive a Sapphire sign-up bonus if you've already received a bonus from either version (Preferred or Reserve) within previous 48 months. It's important to note it's 48 months or 4 years from the receipt of the statement with the bonus on it.

In summary. A blemished banking history can make it difficult to get approved for a new account. People who find themselves in this situation may be eligible for a second chance bank account as an alternative.

With Chase Overdraft Assist℠, we won't charge an Overdraft Fee if you're overdrawn by $50 or less at the end of the business day OR if you're overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit ...

While a relative few will qualify for the highest credit limits, average cardholders will receive card limits in the $3,000 to $5,000 range. However, many cardholders have reported successfully getting a higher credit limit from Chase.

Before we dive in, know that Chase will only perform a soft inquiry on your credit report to see if you're prequalified for a card offer. Unlike a hard inquiry — which can negatively impact your credit score and requires your full Social Security number — a soft inquiry only requires very basic personal information.

Does Chase pull my credit when I am requesting a credit limit Increase? Yes, asking for a credit limit increase will result in a hard pull on your credit. This may lead to a slight temporary drop in your credit score.

The bottom line. If you decide you don't want to hold on to a credit card after applying and being approved by the issuer, you can still cancel your account. Think a bit about the consequences before you cancel. If you do decide to cancel, make sure to get a written confirmation of the account closing.

Multiple Hard Inquiries - When you open a credit card, it triggers a hard inquiry on your credit report. Closing a card immediately after opening it and reopening another card leads to two hard inquiries on your report within a short time. This can lead to your credit score dropping further.

Is it better to close a credit card or leave it open? ›

It is better to keep unused credit cards open than to cancel them because even unused credit cards with a $0 balance will still report positive information to the credit bureaus each month. It is especially worthwhile to keep an unused credit card open when the account does not have an annual fee.

How many credit cards is too many or too few? Credit scoring formulas don't punish you for having too many credit accounts, but you can have too few. Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.

Closing a credit card could lower the amount of overall credit you have versus the amount of credit you're using (your debt to credit utilization ratio), which could impact your credit scores.

That means all of the major business cards from American Express, Barclays, Chase, and Citi do not add to the Chase 5/24 rule, simply because these cards aren't reported on your personal credit reports.

Generally, all personal credit cards, including charge cards and retail store cards, are factored into your 5/24 count. In addition, business cards with TD Bank, Capital One and Discover are included.

Additionally any personal credit card from any other bank will count toward your Chase 5/24 count. This includes most store cards, too. If it's a Visa, MasterCard, American Express, etc., it will count against the Chase rule. If it can only be used inside the store, the card won't count against you.

Generally, small business credit cards do not count toward your Chase 5/24 status. While the credit inquiry will post to your report, the actual account will not. Capital One and Discover are the exceptions to this rule of thumb because in most cases, they report business credit cards to personal credit reports.

Most Chase credit cards are intended for consumers with good to excellent credit scores (FICO® Score of 670 or higher). A score above 700 is even better and gives you a strong chance at approval.

You have to wait 48 months after earning the sign-up bonus on one Chase Sapphire card before you can earn it again on another. The waiting period starts when you receive the bonus — not when you're approved, activate the card or hit a cardmember anniversary.

How many hard pulls is too many? ›

So, applying for credit sparingly can minimize credit damage. In general, having six or more hard inquiries is seen as too many. Having this many hard inquiries can significantly impact your score and make lenders more likely to deny you, even if your score is otherwise sufficient.

The applications will lower your credit score

It usually only takes off a few points at most, but multiple credit inquiries can add up to a larger amount. Each new credit card also lowers your average account age. This is another factor that affects your credit score.

Chase doesn't allow you to be the primary account holder on both the Sapphire Preferred and Reserve cards. So if you already have one Sapphire card, you can't apply for the other.

In most cases, your application could be denied due to having a lower credit score or not having enough income. Call the Chase reconsideration line. If you think the stated reasons are inaccurate, you can call the Chase reconsideration line at (888) 609-7805.

The Chase Sapphire Preferred credit limit is $5,000, at a minimum. But some cardholders can get a credit limit higher than that. Plenty of Chase Sapphire Preferred cardholders report limits of at least $10,000, and some say they have a limit of $20,000 or more.

The Chase Sapphire Preferred income limit is at least $30,000 per year, based on user reports. Chase doesn't publicly disclose the Sapphire Preferred Card's income requirements, but they are required by law to consider a new cardholder's ability to make the minimum monthly payments on their assigned credit line.

If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.

There is no universal number of credit cards that is “too many.” Your credit score won't tank once you hit a certain number. In reality, the point of “too many” credit cards is when you're losing money on annual fees or having trouble keeping up with bills — and that varies from person to person.

There's no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card—and help you save money, earn rewards, and lower your credit utilization.

The bank will revoke the credit if they determine the charge in question was legitimate. If it decides the charge was fraudulent or an error, the credit will be permanent. You might avoid a provisional credit reversal by providing documentation that proves the charge was an error or fraudulent.

What is a 4 48 warning? ›

WARNING FOR COACH/TEAM CONDUCT. A warning to a head coach/bench personnel for misconduct is an administrative procedure by an official, which is recorded in the scorebook by the scorer and reported to the head coach.

We charge a $34 Overdraft Fee (may also be referred to as Insufficient Funds Fee) per transaction during our nightly processing beginning with the first transaction that overdraws your account balance by more than $50 (maximum of 3 fees per business day, for a total of $102).

Some eligible non-payroll costs include:

We'll let you know when you can request Forgiveness through chase.com.

Typically, companies like Chase (and the collection agencies they hire) will present a counteroffer, which you can accept or reject. You may go through several rounds of negotiations before reaching an agreement. If you can't afford to pay off as much as 60%, you still have options.

In 2023, there is no limit to the number of points you can redeem for Pay Yourself Back with the Aeroplan card though Chase and Aeroplan may impose restrictions or penalties for abusing this feature. Starting in 2024, there will be an annual limit of 50,000 points redeemed.

You can't get in trouble for overdrawing your account, especially if it rarely happens to you. You may encounter some difficulty if you are always overdrawn or just don't bring your balance up to date. Your bank may close your account and may send you to collections until you repay the balance.

If your account has a negative balance for more than 60 days, your account will be closed, and you may face significant consequences, such as a negative item on your credit report and the balance and costs being referred to a collections agency.

When a bank closes your account with a negative balance, you will be responsible for paying the amount owed. If you do not pay the amount in a timely manner, the bank may send your account to a collections agency and report your debt to credit bureaus, which could lower your credit score.

Getting a new loan, like a mortgage, auto loan or student loan will not affect your Chase 5/24 status. But, home equity lines of credit or a personal line of credit may. In general, your 5/24 status primarily counts personal revolving credit accounts.

How much will Chase let you go over limit? ›

There is no overlimit fee for the card, as most transactions that would go over the credit line will be rejected. Sometimes, Chase may allow small overlimit transactions to go over your credit line. However, it is not guaranteed. And in case that happens, there will be no over limit fee.

Upgrading or downgrading a Chase card won't affect your 5/24 standing, since you're not opening a new card. Instead, you're trading one card for another. Just keep in mind that you won't qualify for any promotional offers like a welcome bonus.

Chase generally limits credit card approvals to two Chase credit cards per rolling 30-day period. Data points conflict on this but a safe bet is to apply for no more than two personal Chase credit cards or one personal and one business Chase credit card every 30 days.

When a consumer seeks financing through an auto dealership, the financing may be done by the dealership itself or by a third-party lender. If the dealership is, itself, the lender, a credit application permits the dealership to pull a consumer's credit one time.

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

As a Prime member, I get 5 percent back on all of my Amazon and Whole Foods purchases. Keep in mind that while you can still get these Chase cards if you're over five new cards, the accounts you open still count toward your 5/24 total.

If you have specific retail store credit cards, these will only count towards your 5/24 status if the card can be used outside of the specific store. This means if the card has a payment network listed on it such as Visa, American Express, Discover, or Mastercard, it will be counted.

On our list, the card with the highest reported limit is the Chase Sapphire Preferred® Card, which some say offers a $100,000 limit. We've also seen an advertised maximum credit limit of $100,000 on the First Tech Odyssey Rewards™ World Elite Mastercard®, a credit union rewards card.

A good guideline is the 30% rule: Use no more than 30% of your credit limit to keep your debt-to-credit ratio strong. Staying under 10% is even better. In a real-life budget, the 30% rule works like this: If you have a card with a $1,000 credit limit, it's best not to have more than a $300 balance at any time.

Inactivity. Your issuer may decide to close your account after seeing that it hasn't been used for a certain period of time (a few consecutive months, for example). Generally, if your account was closed due to inactivity, you may be able to reopen it.

Does downgrading a Chase card hurt your credit? ›

Downgrading your card allows you to maintain your credit line and your average age of credit so it doesn't have the same negative effect on your credit score as canceling a card might.

Does AmEx have a 5/24 rule? No; in fact, the AmEx welcome bonus rules work differently than Chase.