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

FAQs

Understanding the 5/24 credit card application rule? ›

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.

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.

How to bypass the Chase 5/24 rule? If you've been approved for five cards in the past 24 months, you will not be approved for another Chase card thanks to the 5/24 rule. There have been reports of “Selected for you” and “Just for you” offers being exempt from the 5/24 rule.

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.

If you're an authorized user on another person's account, that will also qualify under the 5/24 rule, because it's listed on your credit report. Fortunately, this is one of the few times you may see some traction through reconsideration.

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.

Thankfully, the best cards on the market are business cards that don't count against Chase 5/24. That includes cards from Chase themself, Amex, Citi, part of Capital One and Barclays. There is a lot of hay to be made right there. The offers from TD Bank and Discover etc.

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.

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.

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.

Can you be approved for CSP over 5 24? ›

In short, this refers to the unofficial rule that Chase won't approve a credit card application for someone who has opened five or more new credit cards from any issuer in the past 24 months.

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.

We recommend only applying for one personal and one business card from Chase in a 90-day period. This will maximize your chance of having applications accepted and minimize your risk of scrutiny by the bank.

To avoid the Chase 5/24 rule, wait to apply for a new Chase card until some of your recently opened accounts fall outside the 24-month window. Prioritize applying for the Chase cards that offer the most value to you.

Authorized user accounts must show up on your credit report to affect your credit score. As for how long it takes for authorized user to show on credit report, you might see your score change as soon as the lender starts reporting that information to the credit bureaus, which can take as little as 30 days.

Can an authorized user be denied? Yes, authorized users can be denied. Typically, the reasons are more straightforward than with a typical credit card application.

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 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.

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.

Bank of America 's 3/12 or 7/12 rule

If you do NOT have a deposit account with Bank of America , your credit card application will be denied if you have opened three new cards in the past 12 months, based on what's visible on your credit report.