Chase 5/24 Rule clarification

[geeharry88]

I needed to free up some cash on two secured cards I got in early 2017 so I closed them. (Yes, I know the problems with closing accounts, so I'd prefer not to go there). They were useful in helping get Citi and Penfed cards of $10.5 and $15K.

 

My question is does Chase look at all currently OPEN accounts opened during the last 24 months under the 5/24 rule or does it look at all NEW accounts opened within the last 24 months regardless if they are currently open or closed?.

 

The reason I'm asking is without these two TLs, if they were just looking at currently open accounts, I'm under 5.

[get.randy]

All new accts

 

 

Sent from my iPhone using Tapatalk

[creditrecovery]

I've always read that it was all new accounts.

I'm about to do 2 Chase apps today. I opened 3 cards in 2016.

[geeharry88]

So all new accounts regardless if they are closed within the last 24 months?

[geeharry88]

I was reading thru the other 5/24 thread but it was never clear to me what the reasoning Chase invoked this rule. Were they doing it because people would be just applying for new cards and not using them? Or that it posed a greater risk with all the new credit issued?

 

With this logic, seems to me they would only count those newly issued cards that were open.

[Big Bear]

Correct, closed/open doesn't matter. If the open date is within the last 24 months it's a new account (with some potential exceptions).

 

An easy way to see where you stand is to use Chase's Credit Journey tool (weekly FAKO score), as it shows the number of new accounts within the last 24 months.

[mec]

So all new accounts regardless if they are closed within the last 24 months?

All revolving credit accounts opened in the last 24 months.

 

Not accounts labled real estate or installment.

 

Just revolving accounts that appear on the credit report they pull.

[tobettercredit]

 

So all new accounts regardless if they are closed within the last 24 months?

All revolving credit accounts opened in the last 24 months.

 

Not accounts labled real estate or installment.

 

Just revolving accounts that appear on the credit report they pull.

What about NAVcheck?

[mec]

They count it as one revolving account.

 

Edit to clarify... I think you are talking about the NFCU CLOC like the one I have that reports to all three bureaus as revolving.

Edited January 6, 2018 by mec

[Big Bear]

 

So all new accounts regardless if they are closed within the last 24 months?

All revolving credit accounts opened in the last 24 months.

Not accounts labled real estate or installment.

Just revolving accounts that appear on the credit report they pull.

From the horse's mouth:

 

You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months

[mec]

 

 

So all new accounts regardless if they are closed within the last 24 months?

All revolving credit accounts opened in the last 24 months.

Not accounts labled real estate or installment.

Just revolving accounts that appear on the credit report they pull.

From the horse's mouth:

 

You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months

I spent a little time, during a fruitless recon for a United Mileage Plus Business card, asking the rep how many accounts I had opened an the last 24 months.

 

I had my Experian report open on the computer screen and specifically asked about the NFCU CLOC and the Sync Lowe's card. She was counting them both.

 

I have also heard of people close to 5/24 being able to get store cards removed from the Chase consideration. But my rep that day said they do count... perhaps because we were nowhere near 5. More like 14/24 at that time.

[hegemony]

 

 

So all new accounts regardless if they are closed within the last 24 months?

All revolving credit accounts opened in the last 24 months.

Not accounts labled real estate or installment.

Just revolving accounts that appear on the credit report they pull.

From the horse's mouth:

 

You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months*

 

*caveat: in branch approvals... and some chase cards are not 5.24 (e.g., Amazon siggy)

[Konrad2012]

 

 

 

So all new accounts regardless if they are closed within the last 24 months?

 

All revolving credit accounts opened in the last 24 months.

Not accounts labled real estate or installment.

Just revolving accounts that appear on the credit report they pull.

From the horse's mouth:

You will not be approved for this card if you have opened 5 or more bank cards in the past 24 months*

*caveat: in branch approvals... and some chase cards are not 5.24 (e.g., Amazon siggy)

Correction - They might not be throttled for new apps by 5/24, but they do count towards 5/24.

[Kat58]

Do inquiries matter?

[Allkindabroke]

Do inquiries matter if they are related to five revolving credit accounts opened in the last 24 months?

[cv91915]

So far I've been civil.

[mec]

Do inquiries matter if they are related to five revolving credit accounts opened in the last 24 months?

The 5/24 rule is: If you have 5 or more revolving credit accounts listed on the relevant credit report (whichever one Chase pulls for the application) you are ineligible for the 5/24 restricted product. It is meant to disqualify applicants based on that alone and if you have fewer than 5 revolving credit accounts over the past 24 months you won't be affected by the 5/24 rule and your application can be evaluated on its other merits. While inquiries can play a role in the evaluation of your application, they do not play any part in the 5/24 rule. Edited June 17, 2018 by mec

[spacemule]

I was reading thru the other 5/24 thread but it was never clear to me what the reasoning Chase invoked this rule. Were they doing it because people would be just applying for new cards and not using them? Or that it posed a greater risk with all the new credit issued?

 

With this logic, seems to me they would only count those newly issued cards that were open.

The whole purpose of the 5/24 rule was to discourage people from churning cards for signup bonuses. Churners will routinely signup for new cards, collect the bonuses, close the accounts, and repeat the process. For this reason, it doesn't matter if the account is open or not, it only matters that you opened it. Also, card issuers want to issue cards that people will actually use, so closing them so soon could be interpreted negatively.