Picture this: you’ve spotted a jaw-dropping credit card sign-up bonus from Chase, maybe thousands of frequent flyer points or cashback. You apply, thinking you’ve aced your credit game, but suddenly, you get declined. What just happened? Welcome to the world of the Chase rule, a little-known yet deeply influential set of policies that have tripped up both new and experienced credit card users. It’s the stuff of late-night finance forums, jaw-dropper dinner stories, and some real frustration. Want to make sure you sidestep this trap? Read on.
What Actually Is the Chase Rule?
The phrase “Chase rule” isn’t just finance talk. It’s mostly shorthand for the infamous “Chase 5/24 rule.” Don’t sweat if you’ve never heard of it—most people are just as baffled the first time it blocks their application. In plain English, the 5/24 rule means: if you’ve opened five or more credit cards at any bank (not just Chase) in the last 24 months, Chase will usually deny you for new Chase credit cards. That’s true no matter how great your income, credit score, or relationship with the bank.
It’s not an official, written policy on Chase’s website, but for years, applicants have consistently found this rule in action. A quick scroll through Australian and US credit card forums like Reddit’s r/churning or online communities such as Points Hack, and you’ll see story after story about folks getting declined because they crossed this invisible line. The whole idea is to cut down on “churning”—that’s the practice of signing up for cards just to snag bonuses, then moving on.
Chase doesn’t just count their own cards. They look at any card account that shows up on your credit report—Westpac, NAB, Citi, whoever—opened in the last 24 months. Authorized user accounts (where you get added as a user on someone else’s card) may or may not count, depending on how they appear on your credit file. Here’s the kicker: the 5/24 limit includes personal cards, and sometimes business cards if they show up on your personal credit history. Slam into five cards and bam, you hit the wall—even if you close old accounts or pay off balances.
So why does Chase do it? Protecting themselves from too many folks gaming rewards systems is the big one, but they’ll also say it keeps lending safe and sustainable. It’s their right, but it’s definitely frustrating for people who didn’t know. Many people first discover it the hard way. Quick fact: respected finance blogger Doctor of Credit once polled his readership and found over 80% listed the Chase 5/24 as their biggest barrier to getting new, valuable cards.
How the Chase Rule Changes Your Credit Card Strategy
The Chase rule isn’t just a boring banking policy—it can totally change how you approach your credit card applications. Used to apply for whatever hot bonus pops up? The Chase rule forces you to be strategic. People who chase the best sign-up bonuses (“churners”) now have to focus on Chase cards they really want first, before adding other issuers’ cards to their wallet. Messing this up could mean waiting years before you get another shot at Chase’s best offers.
Timing is everything. Say you’ve got three cards in the last year, and you’re eyeing Chase’s Sapphire Preferred or Freedom Unlimited. Now’s the moment to apply before taking on extra cards from elsewhere. Australians who travel a lot and kids just out of uni looking to build points say they sometimes put Chase cards top of the list, despite all the tempting new offers from American Express or Citi. Once you go over 5/24, your ability to get the top Chase cards drops off the map until enough time has passed.
Some people get clever trying to stay under the limit, such as going for business cards at certain banks (which may not appear on your personal credit record). Others will space out applications, using spreadsheets or apps like Travel Freely to count cards and dates. Reddit user "MilesDownUnder" created a formula for fellow Aussies to check their 5/24 status before even thinking about applying. Nerdy, but handy.
There’s also the fact that Chase may update their rules with little warning. They might include business cards or exclude them, or change which of their own cards count. Staying up-to-date helps avoid nasty surprises. Some bloggers recommend setting a Google calendar reminder for your own "5/24 drop dates." That means you know to check when old cards are about to fall off your two-year history—so you can plan future apps.
This all sounds like a headache, but for those playing the points game, being aware of the Chase rule makes the process less about luck and more about planning. If you prefer set-and-forget finances, it's still smart to check your credit history before applying, since even innocent mistakes—like agreeing to a joint credit card—can put you over the limit.
Who Is Most Affected by the Chase Rule?
The Chase rule is kind of sneaky in who it targets. If you hardly ever open new cards—maybe you’ve just got your go-to Qantas card or the same cashback card you’ve had for years—it might never trip you up. But if you’re even a little card-curious, it’s worth paying attention.
The people most impacted are usually points and miles fans, folks aiming to stack up as many rewards as possible for travel, gifts, or just bragging rights. Think about marketers and gig workers hunting for the best deals, uni grads wanting to start strong with flexible points, or even parents planning big family trips. Anyone excited about chasing new deals can get caught.
Young adults are hit especially hard when they’re just starting to build credit. For example, if you open a student card, then an airline card, then get added as an authorized user on mum’s account, you’re already halfway to the 5/24 limit before you know it. The same goes for small business owners—some business cards report to personal credit, pushing you up the count.
Expat Aussies living abroad or moving back home might not even realize different lenders count cards differently. Certain Chase co-branded cards (like those partnered with Qantas or Marriott) are also subject to 5/24, so even loyal airline customers have to play by these rules. If you work in a job that needs frequent travel, you probably want to prioritize travel cards from Chase before exploring lesser-known issuers.
Married couples have to be smart, too. If both you and your spouse want Chase cards, you might plan your applications to help one spouse stay under the 5/24 limit while the other applies. That way, you can both earn sign-up bonuses without locking yourselves out for two years.
Here's a gem from The Points Guy, a respected travel rewards site:
“If you are just beginning your journey into the world of points and miles, always keep the Chase 5/24 rule in mind. It shapes so many people’s strategies for what to apply for and when.”It’s not just about gaming the system; it’s about being aware so you don’t slam into a wall you never saw coming.
Tips to Outsmart the Chase Rule and Maximise Your Chances
Tired of hearing “application declined” after doing all the right things? The good news is, you don’t have to just accept Chase’s rule as a dead end. There are ways to work within (or around) the system, and some take only a few minutes to implement.
- Know your tally. Before applying, grab a copy of your credit report (you can do this in Australia for free once a year). Mark all open cards from the last two years. This is your true 5/24 count.
- Pace yourself. Only take out cards you genuinely need or want, especially if you’re eying a future Chase card. Passing on that random department store offer can make a difference.
- Think about the order. If you plan to get cards from a few banks, Chase cards should go first. Otherwise, if you grab too many Amex or Citi cards, you’ll hit the wall with Chase before you know it.
- Consider business cards—carefully. Many US-based business cards do not show up on your personal credit report. If you’re running a side hustle, these can be great for rewards while not bumping up your 5/24 count. Just double-check how your Aussie issuer reports.
- Remove authorized user accounts if needed. If you’re over the limit because of these, call the issuer and ask them not to report the account to your credit bureau. It doesn’t always work, but it’s worth a shot.
- Check for special offers. Sometimes, Chase sends "pre-approved" or "pre-qualified" offers that can bypass the 5/24 rule. These are rare, but if you get one—via mail, email, or your online account—it’s gold. Jump on them quickly.
- Don’t forget the wait. Once you go over 5/24, just hang tight. When a card passes its second birthday, it drops off your tally. Set reminders so you know exactly when you can re-enter the game.
- Stay current. Chase tweaks its rules and specific card requirements often. Bookmark reliable sources like Doctor of Credit or The Points Guy, and check for updates before making your next move.
It’s funny to think of personal finance as a bit of a game, but, as anyone who loves frequent flyer miles or crypto knows, the rules matter. Flip cards too fast and you lose access to massive rewards. Play it smart, and you can keep scoring great deals for years without falling at the first hurdle.
Chase Rule Myths and Pitfalls: What People Get Wrong
The Chase rule inspires a lot of myths and “urban legends” online, so let’s bust a few before you leave. There’s a rumor that if you speak to a Chase rep or apply in person, you can “charm” your way around the rule. Not true—all applications go through automated checks, and the rule applies no matter how slick your chat is. Another misconception: closing old cards will help you get under 5/24. It won’t. It’s all about when you opened the card, not whether it’s active now.
Many Australians living across borders assume the 5/24 rule doesn’t matter if you open non-Chase cards overseas. Wrong—if those cards show up on your US credit file, they’re counted. There’s a belief that business cards never count. In most cases, if it appears on your personal credit record, it counts, so always double-check.
Worried that hitting five new cards tanks your credit score forever? Not the case. Yes, opening many cards quickly causes short-term dips, mostly due to hard inquiries. But over time, keeping balances low and making on-time payments helps your score recover, sometimes even improve thanks to a bigger total credit limit. The trick is not overdoing it or missing payments, not simply the number of cards. According to a March 2025 NerdWallet report, “People with the highest scores often have 10 or more open credit cards, provided they use them responsibly.”
Then there’s “gaming” loopholes that pop up in forums. Stuff like freezing your credit file, disputing authorized user status, or applying through small-town Chase branches. Most of these rarely work and can risk a relationship with the bank for little benefit. If you’re not sure whether a card counts, call and ask the issuer how it’ll appear on your report. And remember, whenever in doubt, wait out the clock, track your dates, and keep your records tight. The more you treat it as a numbers game, the easier it gets to avoid disappointment.
In the end, the big lesson with the Chase rule is kind of simple. If you know how it works, plan your card applications, and keep an eye on your tally, you’ll get the most from those giant bonuses—and dodge those hair-pulling rejections. Navigating the credit world isn’t just about luck. It’s about knowing exactly how the game is played.
