MythBusters: Chase 5/24 Rule Confirmed

Please note this site has financial relationships with American Express and this post may contain affiliate links. Read my Advertiser Disclosure policy here to learn more about my partners.

Like many of you, I could not resist the urge to apply for the new Chase Sapphire Reserve Card for its multitude of travel benefits and its 100,000 Ultimate Reward points worth at least $1,500 for travel. I applied for the card in a Chase Bank last week hoping that a pre-approval there would skirt me around the “unwritten rule” of not getting approved if you have five or more new credit card accounts in the last 24 months. In the end, I’m not sure if I had a pre-approval or not, but as I expected, I recently received the letter in the mail stating that I was declined for the card due to having “Too may new credit cards opened in the last 2 years”.

img_7550.jpg

As Homer Simpson would say, “Doh”.

From reading countless other reports online, and my own personal experience with this denial reason a few months ago, I knew that there was not going to be any getting around this denial since I have no special pull with Chase thanks to being a Private Banking Client or similar. But, in the interest of research, I called Chase for reconsideration anyway to see if there was any wiggle room to get approved, or at least learn something interesting along the way.

 

After a few minutes of being on hold, a very nice guy answered the phone and said what I already knew, that the application was denied due to too many new credit card accounts in the last 24 months. I pressed and inquired as to how many were too many. When I was denied for this reason in the past I couldn’t get a straight answer other than to try again later in the year, but this time the answer came quickly and easily when I was told that you cannot have five or more new credit card accounts in the last 24 months and get approved for this card. In other words, he confirmed 5/24 in no uncertain terms. It is not a myth and not just some random count that credit card aficionados are guessing at. It is a real hard and fast number that a Chase rep said to me today.

It might be interesting to add that we both count that I am at exactly five accounts in the last 24 months. This count does not count any small business cards, including Chase business cards. It only counts the accounts on my personal credit report.

I tried to see if there was any wiggle room with anything and there was none. He said if the denial reason was almost anything else they could potentially reconsider or move stuff around to make it work, but when you have five or more new accounts there is just nothing that can be done except wait and try again later. He recommending looking at my credit report and seeing when an account would fall off that last 24 month count and try again then…yup, already on it

He was very nice, very apologetic, but very clear about the 5/24 rule. Now, there are ways around 5/24 for some people such as getting pre-approved for a card in a bank, but if you ultimately are denied for having five or more new credit cards across all banks in the last 24 months, your chances of getting approved upon reconsideration are very, very, very low unless you are a super important Chase customer. If they are counting an authorized user card in that five or more count you can probably talk them into not counting that one against you, but if you are the primary account holder on five or more new accounts in the last two years then you just gotta wait this one out.

I’ll be waiting along with you until December when I should drop to 3/24…at least my husband was able to get approved in the meantime!

 

Editorial Note: The opinions expressed here are mine and not provided, reviewed, by any bank, card issuer, or other company unless otherwise stated.

Disclaimer: The comments below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Comments

  1. I was put on pending and got approved one week later. 5/24 rule didn’t apply to me. But was at border line between good and excellent credit. One thing that might have helped was I paid off my balances a little early to push my score 20 points higher into excellent credit. So if 5/24 rule doesn’t apply to you, you might want to check your credit report to see what your current scores is and check your credit balances. You just might be on the edge and automatic reconsideration might just need a nudge.

  2. The kicker for me has been the authorized user accounts. I’m slowly removing them all. And getting them expunged from our credit reports. And going forward the bonus for adding an authorized user will have to be much higher, since I don’t have anyone to use as an authorized user who wouldn’t do better than to just apply themselves.

    This is helpful:
    http://www.doctorofcredit.com/removing-authorized-user-accounts-credit-report/

    While funding an account to qualify for a Chase private banking acct is an option, its not something I want to pursue at this point.

    • My plan to this ridiculous problem is to name our 7 month old as the +1 AU, to start giving him a credit history and to avoid the same problem. I don’t know if they have a minimum age, but I imagine a quick conversation with a rep would work.

      • American Ecpress requires AU’s to be at least 15 years old. Chase hasn’t ever required any information on the AU from me except for their name.

  3. I’m at 2/24 (SURPRISING!!!). I have 6 inquiries…but one was an apartment rental, one a refinance for the rental property and one the purchase of our new home. Oh, and a business card. So if they want to get really tehnical, only 3/24. Yet I still got the “DECISION PENDING” after applying in branch. They even did an initial review of my report and said that for some reason it was going to undergo a SECONDARY review? I applied on THU and as of today, it’s *still* pending. I’m getting a bit concerned now. :\

    FYI, FICO is over 800 and I have well over 100k on deposit with Chase (as well as an auto loan and mortgage). If they don’t approve me, I’m gonna be super pissed and threaten to refinance with another company.

    • The system probably can’t approve you for the exposure that they have to you, with the auto loan and mortgage and any other chase cards. All of my apps starting requiring a secondary review once I passed $70K in limits.

  4. Nick +1 w/ AUs. Chase recon in exact terms confirmed 5/24 for me.

    It is outrageous that Chase includes AUs and will not budge on AUs. I’ve called 3 times and tried via secure message. nothing. I’m under the 5/24 rule if you exclude AUs.

    Now comes the month long process of disputing the AUs with EQ,EX, and TU. TU removed the AUs within 24 hours waiting on EQ and EX.

      • I’d recommend disputing the accounts w/ the CRAs as well. Chase told me 3 days to get the AU off my report (last Monday) and the Chase AU is still on my report… Amex removed their AU the next day (after speaking to their CRA department).

    • I had success recently removing an AU CSP by secure messaging Chase. They contacted the credit bureaus to have it removed.

  5. My wife was at 5/24 and the Chase rep even threw in an AU from early 2014 to bring it to 6/24 but my wife argued successfully that the 2 AUs should not count. The rep refused to cite how many cards was too many. My wife was approved after moving around some credit. I was pleasantly surprised considering the reports I have been reading.

    Personally, I think it absurd that Chase counts AUs since you can be added without your knowledge or consent and do not have any personal liability for such accounts. I wonder if that aspect of the rule ends up going by the wayside as the word gets out and people stop adding authorized users for the paltry bonus.

    Does Chase count their own business cards in their 5/24 count? I have read yes but I am curious if anyone who was on the edge has been denied on the basis of a business card. I am at 6/24 with one due to drop off next month and one of the 6 is a Chase business card.

    • yes, Chase counts their own business cards in the 5/24 rule. However, they dont count business cards from other card issuers.

  6. I was denied. I’m at 9/24 :-(.

    I’m considering applying for the Chase IHG card, before 5/24 applies to this card.

    I’ve read that the following cards do not have the 5/24 restriction:

    Chase British Airways
    Chase Disney
    Chase Fairmont
    Chase Hyatt
    Chase IHG
    Chase Ritz-Carlton

    Does anyone know – If I apply now, will it be an issue since I just applied for the Sapphire Reserve? (e.g. too many apps in a short window…)

    Thanks
    Tim

  7. My wife had 3 AU’s and that’s the only reason she was turned down. When we called reconsideration they basically put her right through to a secondary review. I’ll be interested to see what happens with that.

    Per the advice of another fellow traverler/MSer on a different site, I actually put in a second app via a Chase Bank branch while I was traveling. The rep who helped me was actually a Private Client representative and gave me her business card. Unfortunately I went into automatic “pending” status and thus had 2 “pending” apps with Chase (LOL). Well, I received the rejection letter yesterday – what I’m not sure about is whether that is a rejection for both apps or just for the first app. I fear calling in because I would rather my Private Client rep (she was very helpful and offered her services if I am rejected even though I am technically not a “Private Client”) represent me in the discussion than have them pull me up and I have to wing it. On the other hand, I don’t want to wait 30 days before following up. Any advice for next steps there?

  8. My husband was 2/24, applied in branch not pre-approved. Applied and got the pending 7-10 days decision. Over 800 score. He also is a AU on my CSP. Waiting for the letter. Thought he would instantly approved. BTW the Chase agent knew nothing about the benefits of the card. Told us that she would “imagine” all airport lounges would be included. I was trying to hold my tongue and not correct her. As it is never good when a customer knows know more than the seller.

  9. Will have to open a joint account with my CPBC SO if I want to get the CSRC this year. With AUs I am at 9/25. My GE needs renewal by year end so that $100 benefit of CSRC is valuable. That said, having 9 Chase cards I may need to kill a few. Yet I do love all those Chase net 2% credit card loan offers as you can profitably use the loans to fund a Flexperks Kiva portfolio of short term loans.

  10. I applied because I thought I might be able to slide by. Got the “don’t call us, we write you message”. So last night I called and went thru the spill. Then the news. You have to many opened accounts within the past two years? “What” I asked how may do I have, 6? He said no sir, you have 28. “28”? Well no since in asking for any strings pulled to get this card. Moving on.

  11. MP: I just got approved at a local Chase branch.bJust checked my online account and it popped up too. I am WAY over 5/24! Mind you, I was told previously at another Chase branch that I wasn’t pre approved, but I had read elsewhere that if you go to other Chase branches the news may be different. I am glad I was persistent!

  12. For those that have added AUs,
    If you have less than 5 accounts taken out in your own name in the last 24 months – but are over because of the AUs in terms of the Chase 5/24 rule, you will get a denial. However, you can call reconsideration and advise that without the AUs, you are below the 5/24 rule. They will review you application with that knowledge (and absent some other factor) typically forward your application for approval from a manager. Admittedly, it is a nuisance to have to go through this- but there really is no reason to remove the AUs.

  13. Summer, the information that Chase business cards do not count is new, and contradicts a lot of what’s in the “blogosphere”. I hope it’s correct – tt makes a big difference to many of us. (For example, I drop below 5/24 in January if you only count personal cards; need to wait until June if business cards also count.)

  14. Summer I got almost the exact letter you got only it lists experian as the credit bureau that they used for my application. Today I went to the Experian.com website to get my free credit report for having been rejected by chase. It shows I am currently at 9/24. By mid-November I will be at 7/24. I have to wait until March 11th of next year and I will be 4/24. Do you think the 100k bonus will last until then? Me neither but I will not apply for another credit card until then or the 100k bonus goes away unless another awesome credit card offer comes up that I think I can get. In the mean time I am MSing for a double point offer with my SPG business card and after that I think I will upgrade my Amex Everyday to the Preferred in order to potentially get the 4.5 points per dollar for 1st 6k grocery spend. I’m getting low to MR points.

Leave a Reply

Your email address will not be published. Required fields are marked *