In May 2015 Chase started making it more difficult to get approved for Freedom or Sapphire cards if you have been approved for 5 credit cards in the past 24 months. It was dubbed the “5/24 rule.”
In May 2016 “5/24” started applying to more cards, including Ink and United, though others like British Airways, Hyatt, and IHG aren’t affected.
2 weeks ago Chase won the internets with the launch of the incredible Sapphire Reserve card. The card was so wildly popular that they ran out of metal cards and started sending out plastic cards temporarily.
This past weekend this language appeared on the Sapphire Reserve application page. It was the first time Chase has ever acknowledged the 5/24 “rule”:
And then suddenly the application page was taken down for several hours and when it returned the “5/24” language was gone.
I’m not surprised that the language was removed.
For starters, it made it sound that there was a 5/24 “rule.” In fact it’s more of a guideline. Thousands of people that were above 5/24 have indeed been approved for the card. Then again, thousands of people were also rejected due to 5/24.
5/24 itself is misunderstood by many. It has nothing to do with how many hard pulls you have for card applications. It only counts the number of credit cards (on the single report that they pull) that have been opened within the past 24 months. The report that Chase pulls can vary from card to card and state to state.
You can get all 3 of your reports (Experian, Equifax, and Transunion) for free on annualcreditreport.com to see how many cards you have that have been opened within the past 24 months.
You’ll notice that business cards from AMEX, Chase, and Citi don’t show up on your report. Spending on these cards don’t affect your credit as they’re not on your report. They also don’t affect 5/24. Business cards from Barclays, Capital One, and Discover do show up on your report and will affect 5/24.
Store cards that only work at that store reportedly don’t count for 5/24, though if they can be used everywhere it would count towards 5/24.
Authorized user cards do show up on your report and can cause the system or a reconsideration rep to deny you for a card as they do count towards 5/24 by default.
The key with authorized user cards is that reconsideration reps want to know if you are liable for payment on authorized user cards. They can tell which cards are primary and which are authorized user cards. Some people have answered that they share responsibility for payment and have been denied due to 5/24, while others have answered that they are not responsible and have been approved despite being over 5/24 with authorized user cards.
For example, DDF member ae123 indicated that he and his wife pay the bill for his authorized user card, so the reconsideration rep noted in his file that the authorized user card was his responsibility and counted for 5/24. He tried to HUCA, but every rep told him that the previous rep noted that he was responsible for the authorized user card.
In the end he closed the authorized user card and was approved. The reconsideration rep even noted his account that he would be approved for the Sapphire Reserve after closing that authorized user card and calling back in.
You should be able to ask for a reconsideration manager and explain that you aren’t responsible for payment on your authorized user cards and have them excluded from 5/24.
Some reconsideration reps will consider authorized user cards part of 5/24 if they are used frequently. If you let them know that you don’t spend on them then you’ll have better odds of them not counting towards 5/24.
If you run into a brick wall you can call the bank to have your authorized user cards closed and then call Experian, Equifax, and Transunion to have the cards removed from your report.
Having more than $10,000 credit on other cards than can be shifted to a new card can help get approved for Sapphire Reserve.
If you have Chase Private Client (CPC) then you can get approved even if you are over 5/24. Officially CPC is intended for people with $250K with Chase, but a banker can give anyone Private Client status, especially if you promise to move funds from another bank to Chase. You can also share CPC status with family members.
Reconsideration is generally willing to overlook 5/24 for CPC. Private Client bankers can also call reconsideration to push for an approval.
People have also had luck by going into a branch to check if they are pre-approved for card offers despite being over 5/24.
Then again there have been CPC and/or who have been “pre-approved” in the bank who have been denied. And there are regular people over 5/24 who have been approved. The only sure rule here is that there is no hard and fast rule, everything else is YMMV (Your mileage may vary).
Share your 5/24 experience in the comments!