Chase is without a doubt the hottest credit card issuer on the market right now — in my humble opinion. And what that means for people like us is that we should be trying to apply for as many Chase credit cards as possible to not only maximize total points from sign-up bonuses, but also daily spending power. Because ultimately, more points means more travel!
Unfortunately, the 5/24 rule exists, though. Which is essentially an unwritten rule from Chase that does not allow you to get approved for and receive the sign-up bonus for a Chase card if you’ve already been approved for 5 credit cards in 24 months. The intricacies of the rule itself have been investigated, tested, and solidified over the years to the point that many people, through many channels have explained in detail the exact workings of the rule itself.
What I wanted to do in this post was address a specific rule within the rule, and my experience testing it out.
Checking your 5/24
I don’t want to go through an entire walk-through of the 5/24 rule in this post (because of I’ve done just that on another post), but I do want to first mention how one can check their 5/24. And it’s so easy I’d be remiss not to mention it.
While some credit cards offer the ability to check your credit score and history directly through the respective banking website, I swear by Credit Karma for all things credit history. Credit Karma is a free service that provides up to date credit reports from both Equifax and Transunion. But beyond that, it also goes into detail about the cards you’ve opened.
So for the purpose of this post, let’s look at how you can use Credit Karma’s tools to determine where you currently stand with Chase’s 5/24.
On the front page of Credit Karma you’ll see your two scores as well as these tiles right below. We’ll click on the ‘Accounts’ tab.
And once again, their is a summary of your open credit card accounts on the top of the page, but we’re going to focus on the ‘Accounts Reported by Transunion’ section right below. As you’ll see in the picture above, I can look at all the current accounts I have open. And by clicking on the “+” icon on any of these accounts we can learn a bit more about each.
And on the right-hand side you’ll notice that it explicitly states how long the account has been opened. This is where you can keep track of your 5/24 status. Any accounts less than 2 years will be counted towards that magic number or 5. Or are they…
Chase Business Cards on 5/24
As I mentioned earlier in the post, this is not a hard and fast rule written out by Chase. While many Chase executives have gone on the record to confirm the existence of such a rule, there are still a ton question marks about the exact details of the rule itself.
Which brings me to the question originally posed — do Chase Business Cards count towards 5/24?
I’ve actually read quite a bit about this recently. While Credit Karma doesn’t specify a business account, one of my Chase credit cards above is the Chase Ink Business Preferred card, which has only been open for about 5 months. And most of what I’ve researched points to the idea that Chase business cards take into account your 5/24, but do not go towards the 5/24 count. There is one important distinction, though.
About a month ago I decided to apply for the Chase Business Unlimited card, thinking that my count was at 4/24 — in other words, assuming that my Ink card did not count towards 5/24. Unfortunately, though, I received the dreaded denial. And the reasoning — “too many credit card accounts opened in the last 24 months.”
Which obviously meant that my Chase Ink Business Preferred card was being tracked against my 5/24 count. And I think this points to one major distinction when considering business cards against the 5/24.
The Chase Business 5/24 rule
When other “people” say that Chase business accounts do not count towards the 5/24 rule, they are referring to a business operating separately with its own EIN. But there is an option to apply for these business cards as a sole proprietorship. And it is this scenario that I believe differentiates this rule.
I have concluded that if you apply for a business card as a sole proprietorship, where you’ll have to put your name and SSN as identifiers of the business, those accounts will count towards 5/24. And while I can’t necessarily confirm or deny, if you apply for a card under the name of separate business, it is more likely that those accounts will not be counted.
I know for a fact that there are many more data points about this exact topic all over the internet, but I would love to hear about anyone else’s experiences applying for Chase Business cards as it relates to the 5/24 rule.