Understanding the 5/24 credit card application rule (2024)

FAQs

Understanding the 5/24 credit card application rule? ›

What is the Chase 5/24 rule? In order to be approved for any Chase card subject to 5/24, you cannot have opened five or more personal credit cards across all banks in the last 24 months (more on business cards in a moment). This means you actually need to be under 5/24 to be approved.

What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

The 2/3/4 rule: According to this rule, applicants are limited to two new cards in a 30-day period, three new cards in a 12-month period and four new cards in a 24-month period. The six-month or one-year rule: Some issuers may only let borrowers open a new credit card account once every six months or once a year.

The 5/24 rule, often referred to as the Chase 5/24 rule, is an unofficial Chase guideline that states you will not be approved for a new Chase card if you have opened five or more credit card accounts from any bank within the past 24 months.

If you've opened four or fewer new accounts in the last two years, you won't be subject to the 5/24 rule. If you're at five new accounts or more, you'll need to wait until your older accounts age past the 24-month mark.

Hard pulls can affect your credit score and may also hurt your eligibility for new credit cards and/or loans — especially if the number of inquiries reaches six.

Typically, business cards approvals do not count toward your Chase 5/24 score. This is because business cards are associated with a business rather than with the individual applying for the card. This applies to cards from AmEx, Bank of America, BBVA, Citi, U.S. Bank and Wells Fargo.

Pay Off Your Balance

The golden rule of credit card usage is to do everything you can to pay off your entire balance each month.

By making a credit card payment 15 days before your payment due date—and again three days before—you're able to reduce your balances and show a lower credit utilization ratio before your billing cycle ends. That information is reported to the credit bureaus.

Budgeting with the 50-30-20 rule

All you need to do to make a monthly budget with the 50-30-20 rule is split your take-home pay (that is, after taxes and deductions) into three categories: 50% goes towards necessary expenses. 30% goes towards things you want. 20% goes towards savings or paying off debt.

What is the 10x Chase 5 24 rule? ›

The Chase 5/24 rule is an unwritten policy that prevents you from being approved for a new Chase credit card if you have opened five or more accounts with any bank in the last 24 months. Even with excellent credit, you'll likely be denied for certain Chase credit cards if you've opened too many credit cards recently.

Keep track of your credit card open dates so you'll know when you're approaching the limit or when the limit no longer applies. You can also check your credit reports for the open dates of your newest credit cards to determine whether you've triggered the 5/24 rule. Not all card issuers enforce a 5/24 rule.

All personal credit card accounts count toward the rule: cards with no preset spending limits, certain store cards and authorized user accounts. However, many business credit cards — including those issued by Chase — aren't considered when Chase determines your 5/24 standing.

Understanding the 5/24 rule:

The most important rule to consider in collecting points is the “5/24 rule.” The rule is simple: If you get 5 personal credit cards in any 24-month period, you're automatically prohibited from getting a 6th Chase or Capital One card.

The 5/24 rule only applies to getting approved for cards issued by Chase, but your 5/24 count includes credit cards from all banks.

To check your 5/24 status, you must count the number of credit cards you've been approved for over the past 24 months. If an account was opened within the past 24 months, even if it's currently closed, it will count against your 5/24 limit.

To check your 5/24 status, you must count the number of credit cards you've been approved for over the past 24 months. If an account was opened within the past 24 months, even if it's currently closed, it will count against your 5/24 limit. One of the easiest ways to check your 5/24 status is with the Experian app.

Are there limits on how many credit cards you should have? Hopefully you're not disappointed to learn that there is no official, widespread restriction on the number of credit cards you can have.

Getting a new loan, like a mortgage, auto loan or student loan will not affect your Chase 5/24 status. But, home equity lines of credit or a personal line of credit may. In general, your 5/24 status primarily counts personal revolving credit accounts.

It's generally best to wait six months between credit card applications. That will prevent hard inquiries from making a significant negative impact on your credit score.