Does Being an Authorized User Count Towards 5/24?
Navigate Chase's 5/24 rule. Learn if authorized user accounts count and how to manage your credit card applications effectively.
Credit card application rules are a significant consideration for individuals managing their personal finances and credit profiles. Among various issuers, Chase’s unofficial “5/24 rule” holds particular importance within the credit card community. This policy can influence an applicant’s ability to secure new credit products from Chase. This article will clarify how being an authorized user on another individual’s credit card account impacts this specific rule and provide guidance for navigating the application process.
The Chase 5/24 Rule
The Chase 5/24 rule is an internal guideline that leads to the denial of new credit card applications if an individual has opened five or more personal credit card accounts from any issuer within the last 24 months. This count includes cards from Chase and other banks. When an applicant applies for a new Chase card, the system reviews their credit report to determine recent account opening activity.
If an applicant’s credit report shows five or more new personal credit card accounts opened in that 24-month period, their application for a Chase card will be declined. This rule is not officially published by Chase, but its existence is widely confirmed by applicant experiences. The underlying purpose of this rule is a strategy to manage risk and discourage individuals from frequently opening credit cards primarily for welcome bonuses.
How Authorized User Accounts Affect 5/24
Authorized user (AU) accounts count towards the 5/24 rule initially because they are reported to the major credit bureaus—Experian, Equifax, and TransUnion. When an individual is added as an authorized user, the account appears on their credit report as a new account. This reporting is intended to help build credit history for the authorized user, rather than indicating new credit extended directly to them.
Chase’s automated application system processes these reported authorized user accounts just like primary accounts when calculating the 5/24 status. Consequently, if the inclusion of an authorized user account pushes an applicant over the five-card limit within 24 months, their application will face an initial denial. The system does not automatically differentiate between primary and authorized user accounts during the initial review.
This automatic inclusion can be confusing for applicants who are genuinely under the 5/24 limit based on their primary accounts. The system’s raw count of new accounts on the credit report often dictates the initial outcome.
Strategies for Navigating 5/24 with Authorized User Accounts
If an authorized user account causes an applicant to exceed the 5/24 limit and results in a denial for a new Chase credit card, the primary strategy involves contacting the Chase reconsideration line. This direct communication allows the applicant to explain their credit situation to a representative. The reconsideration line for personal credit cards is 888-270-2127.
During this conversation, the applicant should state that the account is an authorized user account, not a primary account for which they are solely responsible. The goal is to request a manual review of the application, emphasizing that the authorized user account does not represent new credit extended to them. Many individuals have found this process effective in having the authorized user account disregarded for 5/24 purposes.
Another option is to proactively address authorized user accounts before applying for a new Chase card. This involves asking the primary cardholder to remove the applicant as an authorized user. Once removed, the applicant can then contact the major credit bureaus to request the removal of that specific account from their credit report. This process can take several weeks.
Accounts That Do Not Count Towards 5/24
It is helpful to know which types of accounts do not contribute to the 5/24 count. Most business credit cards do not count towards the 5/24 limit. This is because many business credit cards, including those issued by Chase, do not report to an individual’s personal credit report.
However, there are exceptions among business cards; some issuers do report to personal credit reports, and these would count. Beyond credit cards, various types of loans are also excluded from the 5/24 calculation, such as mortgages, auto loans, and student loans.
Additionally, unsuccessful credit card applications do not add to the 5/24 count, as only approved and opened accounts are considered. Product changes, where an individual converts an existing credit card to a different product within the same issuer, also do not count as new accounts.