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

FAQs

Understanding the 5/24 credit card application rule? ›

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 5/24 rule is an unofficial policy that dictates that Chase won't approve you for its cards if you've opened five or more personal credit card accounts from any issuer in the last 24 months. Put simply, the number of cards you've opened in the previous two years will affect your approval odds with Chase.

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.

Note, if you are added as an authorized user on someone else's credit card, the card will likely count toward your 5/24 score.

2/3/4 Rule

You can be approved for up to two new credit cards every rolling two-month period. You can be approved for up to three new credit cards every rolling 12-month period. You can be approved for up to four new credit cards every rolling 24-month period.

Since hard inquiries affect your credit score and what is found may even affect approval, you might be wondering: How many inquiries is too many? The answer differs from lender to lender, but most consider six total inquiries on a report at one time to be too many to gain approval for an additional credit card or loan.

The golden rule of credit cards is to pay your balance in full each month.

That means all of the major business cards from American Express, Barclays, Chase, and Citi do not add to the Chase 5/24 rule, simply because these cards aren't reported on your personal credit reports. Let's get to the list!

Chase 5/24 rule exceptions

Credit accounts that are excluded from the Chase 5/24 rule include: Credit cards you were denied for. Small business credit cards (except the ones noted above) Auto loans.

To be approved for a new credit card from Chase, you can't have opened five or more personal credit cards across all banks within the past 24 months. This means that you must be under five personal credit cards to be approved. This rule only dictates your approval for credit cards from Chase.

Can you get denied as an authorized user? ›

Can an Authorized User Be Denied? Yes. While lenders do not perform credit checks on authorized users, they may have policies that prevent them from approving one.

You No Longer Have a Good Relationship with the Primary Cardholder. If your relationship with the primary cardholder has deteriorated, you may want to remove yourself as an authorized user to limit your financial obligations and to avoid any potential disputes that may arise from the use of the credit card.

Our 50/30/20 calculator divides your take-home income into suggested spending in three categories: 50% of net pay for needs, 30% for wants and 20% for savings and debt repayment. Find out how this budgeting approach applies to your money.

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, 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.

What is the 15/3 rule? The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there's no real proof.

What is the Rule of 72? Here's how it works: Divide 72 by your expected annual interest rate (as a percentage, not a decimal). The answer is roughly the number of years it will take for your money to double.

So, if you owe $7,500 on a credit card with a $10,000 limit, your utilization ratio is 75%. As you use more and more of your available credit card limits, your utilization goes up. That can be bad for your credit scores, even if you make your monthly payments on time.