How to Navigate the 5/24 Rule

Chase has two rules to keep in mind. Which one applies to you depends on how you apply for a Chase business card. Here is what they mean and how to plan around them.

The two rules

• 3/24 if you are a sole proprietor. This means you apply with your own name and Social Security number. People are reporting that Chase may turn you down if you have opened 3 or more personal cards in the last 24 months- this is new news!
• 5/24 if you have an EIN or LLC. This means you apply with your business's EIN. Chase generally looks at the 5/24 rule, which gives you more room.

How 5/24 works

Chase generally will not approve you for its cards if you have opened five or more personal credit cards, from any bank, in the last 24 months. Because of this, I recommend leave that fifth spot open so you can apply for business cards from Chase still.

Chase has never officially published this rule, and it is Chase's rule alone. Amex, Capital One and Citi do not count your cards this way.

What counts

• Personal cards from any bank count towards your 5/24.
• Most business cards do not count. They usually do not show on your personal credit report, but some Capital One business cards do, so double check if the business card applies towards your 5/24 count.
• Authorized user cards can count towards 5/24 as well. If someone added you as an authorized user to their card, it may show on your report with its own open date. Ask to be removed, or you can ask Chase to reconsider if you have already applied and were denied because of this.

How to check your number

You can check your own credit report. It is free and it does not hurt your score. Count every personal card opened in the last 24 months.

You can also check the Travel Freely app if you have been using it to organize your cards. It shows where you are on 5/24 and when your next card rolls off. This is generally where I keep track of my number.

Note that roll-off date and either do not open another card that counts towards the 5/24 until it passes, or just make sure your card strategy aligns with opening one before that date. The same count tells you where you are on 3/24.

If you are at 4/24

Look at business cards instead! Keep that last spot open so you can always have the option of applying for a Chase business card (they have a lot of great offers). They can earn you another welcome offer without adding to your personal count. If you apply as a sole proprietor, check your 3/24 count first.

You may be thinking - "But, I don't have a business!". You may already have a business without calling it one. Facebook Marketplace or Poshmark sales, babysitting, dog walking, freelancing, content creation- these are considered business activities and can qualify as a business. 

If you are already past 5/24

Apply for business cards from other banks while you wait. Try not to add more personal cards, or you push out the date you become eligible at Chase again.

Where to go next

Have a look at the cards I recommend for a first ten, and the Start here roadmap if you have not read it.