Does Authorized User Count Towards 5/24?

When considering new credit card applications, particularly with Chase Bank, a common policy known as the 5/24 rule often arises. This unofficial guideline significantly influences an applicant’s approval odds for many Chase credit cards. A frequent question among individuals navigating this rule is how authorized user accounts might impact their 5/24 status.

The 5/24 Rule Explained

The 5/24 rule is an unofficial policy primarily associated with Chase Bank’s credit card application process. This guideline indicates that Chase will generally deny an application for most of its credit cards if an individual has opened five or more personal credit card accounts across all banks within the preceding 24 months. This count includes personal credit cards from any issuer, not just Chase, that appear on an applicant’s personal credit report. Even if a credit card account has since been closed, it still counts towards the 5/24 limit if it was opened within the 24-month period.

Certain store cards that report to credit bureaus and can be used outside a specific retailer also typically factor into this calculation. While most business credit cards do not count against an individual’s 5/24 status because they often do not report to personal credit bureaus, an applicant generally needs to be under the 5/24 threshold to be approved for a Chase business card.

Authorized Users and Your 5/24 Count

Authorized user (AU) accounts often appear on an individual’s credit report, just like primary accounts. When an authorized user account is reported, it can initially seem to count towards the 5/24 limit in automated systems. This is because the account, with its opening date, is listed on the credit report Chase reviews during an application.

Despite appearing on credit reports, authorized user accounts typically do not count against an applicant’s 5/24 status in Chase’s internal review process, especially after a manual review. The primary reason for this distinction is that authorized users are not the primary account holders and are not financially responsible for the debt incurred on the card.

If an application is denied due to an authorized user account pushing an applicant over the 5/24 threshold, individuals can often seek a manual reconsideration. During this process, a Chase representative can review the credit report and typically exclude authorized user accounts from the 5/24 count. This requires explaining that the accounts in question are those where the applicant is solely an authorized user, not the primary cardholder.

Tracking and Managing Your 5/24 Status

To accurately determine your 5/24 status, reviewing your credit report is a foundational step. You are entitled to a free copy of your credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months through AnnualCreditReport.com. This official site allows you to access your comprehensive credit history, which lists all open and closed credit card accounts, along with their opening dates. Many credit monitoring services, including free options offered by credit bureaus like Experian, can also assist in tracking this information by allowing you to sort accounts by opening date.

If you identify authorized user accounts that might be causing your count to appear above the 5/24 limit, there are specific actions you can take. One approach is to contact the primary cardholder and request removal as an authorized user. After removal, you can then contact the credit bureaus (Equifax, Experian, and TransUnion) to request that the authorized user account be removed from your personal credit report, which can take several weeks.

Alternatively, if you have already applied for a Chase card and were denied due to authorized user accounts, you can contact the Chase reconsideration line. This direct communication allows you to explain the situation to a representative who can manually review your application and often disregard authorized user accounts from the 5/24 calculation.