We often wonder How the Chase 5/24 Rule Affects Credit Card Rewards. People who love  credit card rewards use credit card churning to enjoy  the sign-up bonuses. The sign-up bonus is a  big amount  of credit card rewards given to new cardholders who meet a minimum spending requirement. The Chase 5/24 rule makes credit card churners to change their rewards  strategy and make it very hard to earn  rewards on credit cards.How the Chase 5/24 Rule Affects Credit Card Rewards

How the Chase 5/24 Rule Affects Credit Card Rewards ; The Chase 5/24 Rule

The 5/24 rule is completely unofficial. It was drafted by Chase and used only by them. It only permits applicants to be approved for a new Chase credit card if they’ve opened less than five credit cards in the past 24 months. Chase also limits the sign-up bonus on all their credit cards to customers who haven’t earned a sign-up bonus from Chase within the past 24 months. Those five credit cards could have been opened from any bank, not just Chase. The Chase 5/24 rule also applies to any credit cards on which you’re an authorized user.

Moreover, this  5/24 rule has been in motion for up to two years now. At it’s inception, the 5/24 rule was only applicable to a few Chase credit cards––the Sapphire Preferred, Freedom, and Freedom Unlimited cards. After some  months, it increased  to other Chase credit cards, including  co-branded and business credit cards.

Even if you opened fewer than five credit cards in the past 24 months, it does not mean that you will get an approval.  This is because your credit history,  income, and your debts will still be reviewed to decide  if  you qualify for the credit card you’re applying for.

How the Chase 5/24 Rule Affects Credit Card Rewards ; Chase 5/24 Rule Exceptions

Chase can approve you for these cards despite the 5/24 rule, as long as you meet the other qualifications:

  1. IHG Rewards Club Select
  2. British Airways Visa
  3. The Hyatt Credit Card
  4. Disney Rewards Visa
  5. Marriott Rewards Premier Business
  6. Ritz-Carlton Rewards

Even though applying for one of these credit cards with Chase does not count against you, opening one  increases the count toward your five credit card limit. Take note of this.

Also, Chase only counts credit cards  on your credit report. Check your credit report for the past 2 years, get all 3 of your credit reports for free by going to AnnualCreditReport.com. You can also use Credit Karma, Credit Sesame, and Wallet Hub to check your credit report information. Chase only counts credit cards you’ve  opened.

What Can You Do To Deal With the 5/24 Rule?

  • Have less credit cards to allow you to maximize the rewards you earn on the credit cards you
  • Add business credit cards in your rewards credit cards strategy because some don’t report on your personal credit report. This would allow you to continue earning sign-up bonuses without affecting your 5/24 rule status.
  • Avoid applying for up to 5 credit cards within a 24-month period.