What is the 5/24 Rule?

If you’re just getting into this game of points with travel rewards credit cards you may not yet know about the 5/24 rule.

I’ve been in the points world since 2015 and I can honestly say that I didn’t even hear about 5/24 until I dug deep into the rabbit hole, joined a few Facebook groups, and followed some people on Instagram.

And unless you’re looking to apply for a ton of credit cards within a short amount of time, this rule may never affect you.

But we’re all about being strategic and earning as many points as possible with as little effort as possible so with that in mind, I think it’s an important topic to discuss.

So in this post, I’ll tell you exactly what it means to be under 5/24, why it matters for your strategy and your status, and what you should do if you’re over 5/24.

This information is vital to creating a strategy that will work best for you in the long term.

Because points and miles are a long game, and we’re in it to win!

What Is the 5/24 Rule?

The term 5/24 refers to the number of (personal) credit cards you’ve opened within the last 24 months.

So let’s say that in the last 24 months, I’ve opened:

• Costco Credit Card
• Target Credit Card
• Delta SkyMiles Credit Card

So according to the above list (just an example, I don’t have those cards), I’ve opened 3 personal credit cards in the last 24 months.

That would mean that I’m currently at 3/24.

It’s as simple as that.

But what about this 5/24 rule?

The 5/24 rule is an unofficial guideline that Chase uses when deciding whether to approve your application for most of their credit cards.

According to this rule, if you’ve opened 5 or more credit cards—from any credit card issuer, not just Chase—in the last 24 months, Chase will likely deny your application for a new credit card.

It doesn’t matter if you have a stellar credit score or a high income.

The rule still applies.

So even if you’re financially responsible and pay off your balances every month, having opened 5 or more credit cards in that timeframe could stop you from getting approved.

Why Does the 5/24 Rule Matter?

Now we could sit here and discuss why Chase would have this rule, but that doesn’t matter.

It’s not something that they advertise, but we know the rule does exist.

Why does matter?

Those Welcome Bonus offers!

Of course, we want to snag some welcome bonus offers for new credit card applications, but we also want credit cards that will earn us great points for years to come.

So, if you want a laid-back strategy where you have a lot of opportunities to earn with many options to redeem, there’s no better program than Chase Ultimate Rewards® points.

Chase travel rewards credit cards like Chase Sapphire Preferred® Card or Chase Sapphire Reserve® are the cornerstone of a long-term points and miles strategy.

Not only do they earn very lucrative points, but they also offer amazing benefits.

What’s great about Chase Ultimate Rewards® points is that there are several opportunities to earn besides the credit cards mentioned above.

So if you play your cards right (pun intended), you could be well on your way to flying in business class for pennies on the dollar with very little effort.

That’s why you want to be strategic about the credit cards you choose to apply for.

You wouldn’t want to block yourself from Chase credit cards too early on before you experience all that Chase Ultimate Rewards® points have to offer.

Which Credit Cards Count Toward the 5/24 Rule?

When it comes to the 5/24 rule, it’s important to know which cards count toward your limit.

But it is also important to realize that this rule only matters when you apply for any credit cards issued by Chase.

It doesn’t matter if you’re applying for the Chase Sapphire Preferred® Card or the Southwest Rapid Rewards® Plus Credit Card.

If the credit card is issued by Chase, you’ll need to be under 5/24 for the best chances of approval.

So which cards count?

Well, mostly personal credit cards count toward your 5/24 status and it doesn’t matter if they’re from Chase or another credit card issuer.

And it also doesn’t matter what type of credit card it is.

If it shows up on your personal credit report – it counts.

However, it’s not just personal cards that can affect your 5/24 status—some business credit cards also count.

For example, some business credit cards from Capital One and Discover will show up on your personal credit report and count toward the 5/24 limit.

There is good news, though!

Most business credit cards from issuers like American Express, Citi, and Chase do not count toward the 5/24 rule.

Even though these cards might be on your radar, they won’t add to your tally as they don’t show up on your personal credit report.

What if I’m an Authorized User?

This is a great question!

Being an authorized user on someone else’s credit card account can still affect your 5/24 status. Even though you’re not the primary cardholder.

The reason for this is that these credit cards still show up on your personal credit report.

Many points and miles experts will caution you against being added as an authorized user for this reason, but I don’t think it needs to be so black and white.

Being added as an authorized user is not the end of the world.

You can always have yourself removed without issue.

But before you do that, make sure you are the primary cardholder on your own credit cards as well.

And remember, we’re talking about credit cards added to your report in the last 24 months.

If your mom added you as an authorized user 5 years ago, there’s no need to worry.

Just make sure that your entire credit report doesn’t only have credit cards you’re an authorized user on.

You need to build credit on your own.

Being an authorized user can be convenient for many reasons, so don’t freak out.

If you don’t plan to apply for a ton of credit cards within a short period, then it doesn’t really matter much anyway.

Also, if you get auto-denied for being over 5/24 because you’re an authorized user that’s also not the end of the world.

You can call Chase and explain that you’re not the primary cardholder and see if that is enough to push your application through to approval.

How to Strategically Manage 5/24

Managing your 5/24 status is key to unlocking some of the best travel rewards Chase has to offer. But how do you know where you stand?

How to Know Your 5/24 Status

Checking your 5/24 status is as easy as checking your credit report.

Services like Credit Karma and Experian give you easy access to your credit score and list out your credit accounts and the date you opened them.

You can add this to a spreadsheet and easily figure out your status.

There are also some great apps out there that can help you manage your 5/24 status and keep you organized.

Personally, I like to add my credit cards to the Travel Freely app to keep things simple.

Strategies for Prioritizing Chase Cards

Since the 5/24 rule can prevent you from getting approved for Chase cards, I think the best strategy is to apply for Chase cards first, before venturing out into other credit card companies.

Here’s a solid strategy:

• Apply for Chase Cards First
• Monitor Your 5/24 Status
• Stay away from Store Credit Cards
• Leverage Business Credit Cards
• Employ a P2 Strategy

Store credit cards, like those from Target or Costco, still count toward your 5/24 status. Trust me, they’re not worth a 5/24 slot.

Employing a P2 Strategy can help keep you stay under 5/24 longer and earn you double the rewards.

Some people think that if you’re married your credit scores are combined (not sure who spread that rumor), but that’s not true.

Even if you’re married, your credit reports and credit scores are completely separate from one another.

What to Do if You’re Over 5/24

So, you’ve hit (or exceeded) the 5/24 limit—what now?

Don’t worry, being over 5/24 isn’t the end!

Wait Until You Drop Below the 5/24 Threshold

The most straightforward approach is to wait until enough time passes for your card applications to fall out of the 24-month window.

Every month that goes by gets you closer to being back under the 5/24 limit.

I think this only makes sense for two reasons:

1. You don’t have a core group of credit cards yet.
2. You don’t have a lot of big spending coming up.

I don’t think you need to constantly be applying for a lot of credit cards to be successful with points and miles.

But if you don’t have a core group of credit cards so that you can maximize your everyday spending then you’re just leaving points on the table.

Equally, if you do have a core group of credit cards and you don’t have enough spending to meet a minimum spending requirement, then it can be nice to take a break from new credit card applications.

We try to apply for a new credit card once or twice a year, but in the meantime, we maximize our earnings on the credit cards we already have.

Focus on Other Credit Card Issuers

While you’re waiting to drop below 5/24, you can still build your points and miles strategy by applying for cards from issuers that don’t follow the 5/24 rule.

Remember 5/24 is a Chase rule, but other credit card issuers have their own rules.

Here are some options:

Capital One: My next favorite mix cards are the Capital One Venture Rewards Credit Card and Capital One Venture X Rewards Credit Card are great options, offering flexible rewards and easy redemption options like transferring to travel partners.

American Express: The flexible Amex Membership Rewards offers great value with their American Express® Gold Card and The Platinum Card® from American Express cards which can be transferred to a variety of awesome travel partners.

If you don’t already have one of these I would recommend starting with the Gold so you can earn the welcome bonus for the Platinum in the future.

Citi: The Citi Strata Premier℠ Card is a great earner for the flexible Citi ThankYou points, which can be transferred to several travel partners.

You can also check out CardMatch™ to find welcome offers targeted specifically to you.

Leverage Business Credit Cards

My favorite way to keep me under 5/24 is by leveraging business credit cards.

Many business credit cards don’t show up on your personal credit report. Hence why they don’t count toward 5/24.

It’s great because almost anyone is eligible for business credit cards.

Business credit cards open up so many more opportunities for earnings, benefits, and perks.

Keep in mind that Chase Business Credit Cards are still subject to the 5/24 rule.

So although they will not count toward your 5/24 status, you’ll still need to be under 5/24 for your best chances of approval.

Some great business credit card options:

• Ink Business Cash® Credit Card
• Ink Business Unlimited® Credit Card
• Ink Business Preferred® Credit Card
• Capital One Venture X Business
• American Express® Business Gold Card
• The Business Platinum Card® from American Express

Be Patient and Strategic

Understanding and managing the 5/24 rule is a crucial step for anyone serious about maximizing their points and miles.

Chase offers some of the best travel rewards cards on the market, but they’re not the only ones in the game.

Don’t rush into things, take a little bit of time to be patient and work on a strategy that works best for you.

Remember, the key is to take your time.

Whether you’re just starting out or already over the 5/24 limit, carefully planning your credit card applications will help you make the most of your travel rewards.

Need More Resources?

Check out these posts:

• 8 Points and Miles Myths Debunked
• Are Travel Rewards Credit Cards Right for You?
• Credit Cards vs. Debit Cards which is safer?
• Why Credit Card Annual Fees are worth it
• New Card? Here’s what you should do next

Want to Travel More for Less?

Become a Budget Traveler! Head over to my start here page and grab my free budget travel cheat sheet  – it’s packed with valuable tips to help you create your own winning budget travel strategy.