The notorious Chase 5/24 rule can be pretty inconvenient for those of us trying to earn as many points and miles as possible. Luckily, there are Chase 5/24 rule exceptions that are key to keeping your points and miles strategy alive and well. In this blog post, I’ll explain the Chase 5/24 rule as well as how you can earn more credit card points in spite of it.
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Chase 5/24 Rule Explained
Before we dive into the Chase 5/24 rule exceptions, what is the Chase 5/24 rule? The Chase 5/24 rule is an unwritten, yet strictly followed, rule that suggests that you cannot open any Chase bank credit card if you have opened five credit cards from any bank in the past 24 months. In other words, if you have opened five personal credit cards in the past 24 months, any Chase credit card application you submit will be denied.
While this may sound like a huge credit card allowance for points and miles beginners, seasoned travel hackers know that this can put a huge damper in your points and miles strategy if you’re not careful. You see, the best way to get more credit card points without spending more is by taking advantage of new credit card welcome offers. These welcome offers are only available when you open new cards. So, this means we have to be ultra strategic with which credit cards we open and when. Otherwise, you could be missing out on a lot of valuable Chase Ultimate Rewards points.
Chase 5/24 Rule Exceptions
Thankfully, there are Chase 5/24 rule exceptions: business credit cards. Most business credit cards do not count toward the Chase 5/24 rule, which means us travel hackers can leverage business credit card welcome offers to earn more credit card points without hitting our Chase 5/24 rule limit.
Plus, believe it or not, you do not need a huge million dollar business in order to apply and be approved for business credit cards. Often, even if you’re just selling household items on Facebook Marketplace, this can be enough to apply for an EIN number from the IRS. This is what you’ll need to apply for business credit cards. An EIN (employer identification number) is essentially your business’s SSN. Sometimes, you can even just use your personal SSN to apply for business credit cards as a sole proprietor.
However, there are a few exceptions to this Chase 5/24 rule exception. A few banks are known to report business account activity to personal credit bureaus. Chase uses personal credit bureau data to see whether or not you’ve opened too many credit cards in the past two years. These banks include Capital One, Discover and TD Bank. So, keep in mind that business credit cards from these banks may count toward your five in 24.
Note, this is all crowdsourced information among the points and miles community. Chase has never officially disclosed whether or not this rule and these exceptions are written in stone. Take all of this information as theory, not fact. And, know that you might have different experiences on your points and miles journey!
Chase 5/24 Rule For Authorized Users
In addition, when considering the Chase 5/24 rule, it’s important to know that if you are an authorized user on a credit card, that credit card will also count toward your Chase 5/24 count. So, most travel hackers are not authorized users for any credit cards — unless there is a very specific and worthwhile reason (such as valuable card benefits for authorized users) to do so. If you are an authorized user for a card, and this card puts you above 5/24, I suggest removing yourself as the authorized user if you can.
How To Check Your Chase 5/24 Rule Status
To accurately see how many credit cards you have opened in the past 24 months, check your credit report. Your credit report will show you exactly which cards you opened and when. I personally use Experian to check my credit history for free. But, you can also use Equifax and/or TransUnion.
Once you check your credit report, I recommend logging all of the reported card accounts into the free Travel Freely app. The Travel Freely app helps you keep track of your Chase 5/24 status, tells you when it’s time to earn a new welcome offer, as well as recommends new credit cards to maximize your points and miles strategy. The Travel Freely app makes travel hacking so manageable. I’ve been using it for over a year now, and I highly recommend it.
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