Do Authorized Users Count Towards 5/24?

Credit card application rules can be complex. Chase’s 5/24 rule is a well-known guideline that often raises questions, especially regarding authorized user accounts. This article clarifies the impact of authorized user accounts on your 5/24 standing and offers steps for managing credit card applications.

The Chase 5/24 Rule

The Chase 5/24 rule is an unofficial, yet consistently applied, guideline that significantly influences approvals for new credit cards from Chase. This rule states that if you have opened five or more personal credit card accounts from any issuer within the last 24 months, Chase will generally deny your application for most of their cards. The primary objective of this rule is to target long-term customers rather than those who might frequently open cards solely for welcome bonuses.

The rule counts new personal credit card accounts opened across all banks, not just Chase. This includes accounts from any issuer, even if closed. Store cards usable at multiple retailers or part of a national payment system may also count.

Not all credit products contribute to your 5/24 count. Most business credit cards, especially from American Express, Bank of America, Barclays, Chase, and Citi, do not appear on your personal credit report and thus do not count. Other credit accounts like mortgages, auto loans, student loans, or lines of credit are also excluded. Product changes or upgrades to existing credit cards usually do not add to your 5/24 count, provided a new account is not opened or a hard inquiry is not performed.

Authorized User Accounts and the 5/24 Rule

An authorized user account is established when a primary cardholder adds another individual to their credit card, allowing that person to use the card. While the authorized user can make purchases, they are not legally responsible for the debt; only the primary cardholder bears that financial obligation. These accounts often appear on the authorized user’s credit report because card issuers typically report them to the credit bureaus.

Authorized user accounts can be included in your 5/24 count by automated systems. However, Chase’s internal systems are designed to distinguish these from primary accounts. While an authorized user account may initially cause an application denial, this issue is typically resolvable.

Chase generally does not count authorized user accounts against an applicant’s 5/24 status if clarified. If an authorized user account causes an initial denial, applicants can resolve this by contacting Chase directly. Representatives can see the account details and manually override an automated decision, recognizing the applicant is not the primary obligor.

Determining Your Current 5/24 Count

Accurately assessing your 5/24 status is important before applying for a new credit card. Review your official credit reports from Equifax, Experian, and TransUnion. You can get a free copy weekly from each bureau via AnnualCreditReport.com, the only federally authorized website for this purpose. Ensure you are on the correct, secure website to protect your personal information.

Once you have obtained your credit reports, carefully examine the “date opened” for all credit card accounts listed. Manually count every personal credit card account opened within the last 24 months, regardless of whether it is still open or closed. Pay close attention to any accounts where you are listed as an authorized user, as these will also display an opening date and contribute to the initial count on your report.

While credit monitoring services can assist, your official credit report provides the most comprehensive and accurate information. This review helps you understand your precise 5/24 standing and identify any accounts, including authorized user accounts, that might appear to put you over the limit.

Addressing Your 5/24 Status

Once you have accurately determined your 5/24 count, you can proceed with your credit card application strategy. If your count of primary personal credit cards opened in the last 24 months is genuinely below five, excluding any authorized user accounts, you can typically apply with confidence. However, if your count appears to be at or over five due to the inclusion of authorized user accounts on your credit report, specific actions may be necessary.

The primary method for addressing issues caused by authorized user accounts is to contact the Chase reconsideration line. For personal cards, the reconsideration line can be reached at 888-270-2127. When speaking with a specialist, clearly explain that certain accounts appearing on your credit report are authorized user accounts, and you are not the primary cardholder or financially responsible for them. Chase representatives often have the ability to see the true nature of these accounts in their internal systems and may manually approve your application after reviewing the details.

In situations where you are genuinely over the 5/24 limit with primary accounts, other strategies might be considered. You could wait until enough time passes for older accounts to “age off” your 24-month window, typically the first day of the 25th month after an account was opened. Another option might involve exploring business credit cards, as many of these do not report to personal credit reports and thus do not count towards the 5/24 rule. Alternatively, you may consider applying for cards from other issuers that do not have similar stringent application rules.