Buzz
When Chase introduced the Sapphire Reserve credit card in 2016, it became an instant hit among travel rewards enthusiasts eager to leverage its points-earning potential and abundant benefits.
However, some applicants found themselves unable to secure approval for the card, despite having top-tier credit. This was due to the restrictive 5/24 rule.
Here’s Richard Kerr from The Points Guy shedding light on the surge of rejections:
Agents explained that an applicant was denied because they had 'opened too many new accounts in the last 24 months.' Over time, data points revealed that Chase's denial threshold was based on having opened five or more credit card accounts across any banks within the last 24 months.
This limitation appears to apply specifically to Chase cards, though this matters given that Chase issues some of the most popular rewards cards available. In addition to the Sapphire Preferred and Sapphire Reserve, Chase offers co-branded cards with Southwest Airlines, United, Starbucks, Hyatt, Disney, and more. While it is restricted to Chase cards, the significance remains due to the desirability of Chase cards among rewards enthusiasts.
If you’re someone who frequently opens new accounts to snag signup bonuses, the 5/24 rule might present a challenge to your rewards strategy.
If you’re unsure whether the rule affects you, check your credit report through annualcreditreport.com or a free service like Credit Karma. Look at the opening dates of your Chase cards, listed under 'JPMCB Card Services.' If you’ve opened more than five Chase cards in the last 24 months, you’ll need to wait before applying for any new Chase cards. For example, if you have three Chase cards from years ago and two opened recently, you should still be able to apply.
If you’re looking for a way around the 5/24 restriction, there are a few methods to try. According to Doctor of Credit, you can apply for a new card by logging into your Chase account and selecting 'Selected For You' or 'Just For You' offers to bypass the 5/24 rule. Additionally, if you receive a preapproval offer for a Chase card via email or regular mail, you may be able to apply and be approved within the two-year window.
If your objectives are more straightforward—like managing debt, improving your credit score, and using your cards responsibly—the 5/24 rule may not be a concern for you. However, if you have a number of cards, it's wise to review your current lineup before applying for any tempting new ones.
