Do Authorized User Cards Count Against 5 24
Ah, the wild, wonderful world of credit cards! It’s a jungle out there, right? We’re all trying to navigate it, snatching up those sweet sign-up bonuses like they’re the last slice of pizza at a party. But then, BAM! You hit that mythical, often-feared, “5/24 rule.” It’s like the bouncer at the hottest club in town, and suddenly, your shiny new card applications are getting politely, or sometimes not so politely, shown the door.
Now, for the uninitiated, or even for us seasoned credit card adventurers who sometimes forget the finer details after a particularly enticing bonus offer, there’s a question that pops up more often than a rogue notification on your phone: Do authorized user cards count against my 5/24 status? It’s a question that can send a shiver down your spine, especially if you’re staring down the barrel of that 5/24 limit.
Let’s break it down, shall we? Think of your 5/24 rule like this: imagine you’re collecting those fancy collector’s edition action figures. You only have space for five on your prized display shelf. Every time you bring home a new one (that’s a new credit card application), it takes up a spot. But what if someone else gives you one of their action figures to hold onto for a bit? Does that count as your new figure taking up space?
This is where the authorized user situation gets a little… murky. It’s like that friend who asks to borrow your favorite sweater. You still own the sweater, but they’re wearing it. Does that mean you have one less sweater in your closet because they’re rocking it at the coffee shop?
The short, and often disheartening, answer is: YES, authorized user cards generally do count against your 5/24.
I know, I know. It’s a gut punch. You thought you were being clever, helping out a family member or a trusted friend by adding them as an authorized user to your card, maybe to help them build some credit or just for the convenience of them being able to use it. You were the benevolent card-granting deity! And then you find out that this act of kindness is, in the eyes of Chase (and some other issuers, but Chase is the big kahuna when it comes to 5/24), an application you made.
Think about it from Chase’s perspective. They’re looking at your credit report, a big ol’ document that tells your financial life story. When you add an authorized user, that card appears on their credit report, linked to your account. It’s showing up as a card you’re associated with. For Chase, this looks suspiciously like you’ve gone out and gotten another line of credit, even if you’re the primary account holder and responsible for the bill.
It’s kind of like when you lend your car to your teenage nephew. He’s driving it, having a blast, and maybe even getting a speeding ticket (ouch!). But when the police run the plates, they’re still seeing your car. Chase, in this analogy, is the diligent police officer who sees your car out and about and says, “Hmm, this car is out there. And who is it registered to? Ah, it’s registered to you! That means you’re actively using a vehicle on the road.”
So, that innocent act of adding your mom as an authorized user on your travel rewards card, so she can snag some points on her next cruise? For 5/24 purposes, it’s often treated the same as if you applied for a brand new card. Every single card that pops up on your credit report from the last 24 months, regardless of whether you’re the primary applicant or just an authorized user, is usually counted.
This is why you’ll see so many savvy credit card enthusiasts being super careful. They’re like meticulous hoarders, but instead of hoarding Precious Moments figurines, they’re hoarding their 5/24 slots. They’ll plan out their applications like a military operation. “Okay, I’m getting this card in January, that card in March, and then I’ll maybe consider adding Aunt Carol as an authorized user in August… if I’m feeling generous and still have a slot.”
It’s not just a Chase thing, either, though Chase is the most vocal and consistent with its 5/24 rule. Other issuers might have their own internal metrics, and while they might not explicitly call it "5/24," they do look at the number of new accounts on your report. So, even if it’s not a strict 5/24 rule, an authorized user card can still impact your chances of getting approved for new credit elsewhere.
Imagine you’re applying for a loan at your local bank. The loan officer is looking at your financial health. They see a whole bunch of credit cards on your report. They might think, “Wow, this person has a lot of credit. Are they overextended? Can they handle more debt?” Adding an authorized user card makes your credit report look busier, which can sometimes raise a red flag, even if you’re not the one footing the bill for that particular card.
Let’s talk about the practical implications. You’ve been eyeing that shiny new premium travel card with the insane welcome bonus. You’re at 4/24, and you’re thinking, “Okay, one more before I hit the wall.” Then, you remember that you added your college-aged son as an authorized user on your old gas card a few months back so he could pay for his gas without you having to Venmo him every time. Suddenly, you’re at 5/24, and that dream card is out of reach for another two years.
It’s like planning a surprise party. You’ve got the guest list, the decorations, the cake… everything is perfect. Then, just as you’re about to send out the invitations, you realize you accidentally invited your cousin who always spills the beans. Now you have to scramble to make sure the surprise isn’t ruined, or worse, you have to uninvite the cousin, which feels a little awkward.
The key takeaway here, folks, is to be aware. When you’re playing the credit card game, every move counts. Adding an authorized user is a move. It’s a strategic move that can have consequences, especially if your ultimate goal is to churn for those juicy sign-up bonuses.
So, before you hit that "add user" button, ask yourself:
- Does this person really need to be an authorized user? Is it for an emergency, to help them build credit legitimately, or just for a little extra spending power?
- Am I close to my 5/24 limit? If I’m at 3/24, adding someone might be fine. If I’m at 4/24, I might want to hold off for a bit.
- Is this an issuer that strictly enforces 5/24 (like Chase)? If so, I need to be extra cautious.
It’s like choosing your travel companions. You want people who are going to make the journey enjoyable and not cause unnecessary drama. An authorized user is like a travel companion on your credit report. You want to make sure they’re not going to cause you to miss out on your dream destination (that dream credit card bonus).
What about when you remove an authorized user? Does that help? Well, that’s another can of worms. Generally, closing or removing an authorized user from your account doesn’t instantly remove it from your credit report. It typically takes some time for that to reflect. So, you can’t just quickly add someone and then immediately remove them to game the system. The credit bureaus like their data to be static for a while.
Think of it like this: you accidentally chipped a paint on your car. You can try to buff it out, but the scratch might still be there for a while. Similarly, an authorized user showing up on your report is a mark that can take time to fade, at least in the eyes of the 5/24 rule.
So, to reiterate, with a sigh and a knowing nod, authorized user cards do count against your 5/24 limit, especially with issuers like Chase. It’s a crucial piece of information for anyone trying to maximize their credit card rewards and keep their applications flowing smoothly.
It’s a bit like being a chef. You have a limited number of burners on your stove. You can cook multiple dishes at once, but if you add too many pots and pans, things get crowded, and you risk burning something. Each credit card application is like adding a pot to the stove. Adding an authorized user is like adding another pot, even if you’re not the one directly stirring that particular pot.
The best advice? Plan ahead. Keep a spreadsheet. Track your applications. Know where you stand with your 5/24. And when it comes to adding authorized users, do it with intention and awareness of the potential impact on your credit card application journey. It’s all about informed decisions and avoiding those dreaded application denials that make you want to bury your head in the sand.
So, the next time you’re tempted to add someone as an authorized user, just do a quick mental calculation. Is this worth potentially losing out on a Chase Sapphire Reserve or a new Amex Platinum offer in the next year or two? Usually, the answer is a firm "no," unless it’s a truly compelling reason. Treat your 5/24 slots like precious gems, because in the world of credit card rewards, they kind of are!
Happy card hunting, and may your 5/24 count always be in your favor!