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The Chase 5/24 rule states that you cannot be approved for certain Chase cards if you have opened up 5 or more credit cards within the past 24 months, subject to certain exceptions. But like just about any other rule, there are expecting for getting around this rule. This article will look at two exceptions to this rule: one that appears to be expanding and another that appears to be going away.
The pre-approval exception
The main exception that people rely on to bypass this rule is getting an in-branch pre-approval. This requires you to go into a Chase branch and inquire with a banker if you are pre-approved for any cards. If the answer is yes, then typically you will be able to bypass the 5/24 rule and usually will be approved for a credit card.
Now, there’s another emerging exception that seems to stem from this. It appears that if you have a pre-approval offer show up on your personal Chase account when you log-in online, you can get around 5/24 when you apply for that credit card. Keep in mind that it doesn’t mean you’ll automatically be approved so a rejection is still a possibility.
There appear to be two ways to see these offers. Check out this article by the Doctor of Credit and this one by Miles to Memories to see exactly where these pre-approvals might show up on your interface.
If you have your business credit cards linked to your personal accounts then you will need to contact Chase and ask them to set you up a separate personal account. It’s possible to have a log-in that just shows personal accounts or business accounts and then also have a log-in that shows personal accounts and business accounts. In order to see if you qualify for any of these pre-approvals, you will need a log-in that only pulls up your personal accounts, as far as I know.
So that’s the good news.
The bad news is that there’s a rumor reported by the Doctor of Credit that another change is coming into effect for the 5/24 rule. This new change will do away with the exception that allowed Chase/JP Morgan Private Client (CPC) members to bypass the 5/24 rule. CPC members are those who have moved a high amount of assets into Chase.
The formal requirement has always been $250,000 of assets but a fact that more people were recently made aware of was that you could get CPC by depositing far less (in some cases even a good-faith commitment could get you in). I’m wondering if more people learned about how easy it could be to get CPC and started joining CPC simply to get around 5/24. If so, Chase might have caught on to that and decided to put an end to it just by putting an end to the 5/24 exception. That’s just conjecture on my part, though.
It’s hard to read into these changes by Chase since they send conflicting messages. Chase is making it easier for some to obtain cards that would otherwise not be obtainable due to the 5/24 rule but at the same time making it more difficult/impossible to get approved for cards for mostly nigh net worth individuals (truly valued customers). It would seem that “churners” would fall disproportionally into the former category than the latter, so I’m not sure what Chase’s goal is with these moves. Could there really have been that many CPC members bypassing 5/24 that it became a bigger problem than people bypassing 5/24 with pre-approvals?
HT: The Travel Sisters; Miles to Memories; Doctor of Credit.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. His content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.