Do Business Credit Cards Count Towards Chase's 5/24 Rule

Business credit cards can be a valuable tool for entrepreneurs and small business owners, offering rewards, cashback, and other benefits that can help offset business expenses.

According to Chase's 5/24 rule, having too many new credit accounts in a short period can negatively impact your credit score and eligibility for Chase credit cards.

Chase defines a new credit account as one opened in the past 24 months, with a maximum of 5 new accounts allowed in this time frame.

The Chase rule is a bit of a mystery, but essentially, it's a rule that prevents you from getting a new Chase credit card if you've opened too many other cards recently. Specifically, you'll likely be denied if you've opened five or more credit cards within the past 24 months.

The rule is unofficial, but it's well-established by data from card applicants and credit card experts. This means you won't find it written down in Chase's official terms and conditions, but it's still something to be aware of.

To count against you, the cards include store cards that can be used outside of the store that issued the card, charge cards affiliated with banks, and credit cards on which you're an authorized user.

If you're wondering how to check your Chase 5/24 number, you can pull your credit report from one of the three credit bureaus (Experian, Equifax, or TransUnion) and count the number of accounts you’ve opened within the past 24 months.

Here's a quick rundown of what counts against you:

Note that business credit cards are often exempt from this rule, which is a good thing for entrepreneurs and small business owners.

Business credit cards and the 5/24 rule can be a bit confusing, but most business cards don't count towards your 5/24 total.

Most business credit cards are not listed on your personal credit report, so Chase won't see them when checking your credit history. This means you can open business credit cards without worrying about them counting against you.

However, there are some exceptions. Capital One, Discover, and TD Bank business cards will report to your personal credit file, so they will count towards your 5/24 total.

You can check your credit report to see which business credit cards are listed and which ones aren't. This will help you avoid any potential issues when applying for new credit cards.

Here are some business credit cards that are known to not count towards your 5/24 total:

Keep in mind that these cards may still have other requirements or restrictions, so be sure to check the terms and conditions before applying.

Business cards from Chase don't count towards your 5/24 total, but you still need to be under 5/24 to be approved for a Chase business card.

If you're at 5/24 or more, you'll be rejected for a Chase business card, and you'll need to wait until you're at least 4/24 to try again.

The Chase 5/24 rule is a bit tricky, but I'll break it down for you. The rule states that Chase will not approve you for its cards if you've opened five or more credit card accounts in the last 24 months.

This includes cards you open at Chase and cards you open at other banks that are reported to your personal credit report. Most business credit cards, however, do not count against you under the 5/24 rule.

You can check your Chase 5/24 number by pulling your credit report from one of the three credit bureaus (Experian, Equifax, or TransUnion) and counting the number of accounts you've opened within the past 24 months.

Chase business cards do not count towards the 5/24 rule, so you can apply for them without worrying about it. However, if you've already opened five cards, you'll likely be denied for a Chase business card as well.

Here are some business credit cards that don't count towards the 5/24 rule:

Keep in mind that business credit cards from Capital One, Discover, and TD Bank do count towards the 5/24 rule, as they report to your personal credit file.

If you're worried about the Chase 5/24 rule, you can consider opening a business credit card instead of a personal one. Most business cards won't count toward 5/24 unless you get one from Capital One, Discover, or TD Bank, which will report to your personal credit file.

Business credit cards from issuers like Chase, Bank of America, and American Express will not count toward 5/24 because they report to your business credit file instead.

Here are some recommended business credit cards to consider:

Business credit cards offer higher signup bonuses, making them a lucrative opportunity while you wait for your Chase 5/24 status to cool down.

Let's dive into a case study to understand how the 5/24 rule works in practice. A person has applied for five credit cards in the past two years, including the Citi Double Cash Card, Discover it Cash Back, Chase Freedom, Capital One Quicksilver Cash Rewards Credit Card, and Bank of America Business Advantage Customized Cash Rewards Mastercard credit card.

That's 5/24, but the Bank of America card doesn't report to personal credit, so it won't count against them. This means they actually have one slot available, and they're 4/24.

Here's what could happen next: if they apply for a personal card from Chase and a business card from another issuer that doesn't report on their personal credit, it doesn't matter which of these two cards they apply for first. The business card won't show up on their credit history, so they can qualify for the Chase personal card.

If they want to apply for a Chase business card and a Chase personal card, they'd need to apply for the business card first. This wouldn't count against them in 5/24, so they could then go ahead and sign up for the personal card next.

If they plan to apply for a Chase personal card and apply for a business credit card that reports on their personal credit history, such as a Capital One card, they should apply for the card from Chase first. Otherwise, their business card would be their fifth card, and the 5/24 rule would prevent them from getting approved for either a Chase personal or business card.

US credit cards can consume a Chase slot, making it harder to get approved for a Chase card. This is known as the 5/24 rule, which counts personal credit cards from any financial institution.

All personal credit cards, regardless of the bank, consume a slot towards Chase 5/24 status. This means that applying for multiple personal credit cards from different banks can quickly put you over the limit.

Some business credit cards do count towards the 5/24 rule, but most don't. Exceptions include Discover business cards, TD US business cards, and Capital One business cards, except for two specific cards.

Here's a list of business credit cards that consume a Chase slot:

On the other hand, Chase business cards and American Express US business credit cards do not count towards the 5/24 rule. This is a major advantage, as you can apply for Chase business credit cards without worrying about affecting your 5/24 status.