Does the 5/24 rule only apply to credit cards? (2023)

Who uses the 5 24 rule?

Put simply, Chase will not approve you for any of its cards if you have already opened 5 (or more) credit card accounts in the last 24 months (with a few exceptions). This includes cards you open at Chase and cards you open at other banks that are reported to your personal credit report.

To calculate your 5/24 score, you'll need to count the number of credit cards listed on your personal credit report that were opened in the past 24 months, even if you've already closed them. This simple tally is all you need to calculate your 5/24 score.

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.

Being mindful of the cards you open is crucial to staying "under" 5/24. Even some department store credit cards count toward the five-card limit in 24 months — however, student loans, mortgage loans, and car loans are not included in this rule.

Surprisingly, Chase issues several cards that are not subjected to the 5/24 rules. That means you can get these cards if you've opened five or more accounts in the last 24 months: Amazon Rewards Visa Signature.

According to most recent data points, you will not technically be below 5/24 until the first day of the 25th month after your fifth account was opened. For example, if your fifth most recent account was opened on July 17, 2021, do not apply for a new card until at least Aug. 1, 2023.

Two important notes: Capital One business cards also count toward your 5/24 limit. Technically you become eligible on the first day of the month following the expiration of the 24 month timer on your 5th oldest card (we know, it's kind of 5/25)

2/30 Rule. The 2/30 rule says that you can only have two applications every 30 days or else you'll automatically be rejected. If you don't have a high credit score (700+), your chances of getting approved for the Chase Sapphire Reserve® is slim. Chase usually looks for a great credit score or a banking relationship.

While American Express doesn't have a "5/24" rule like Chase does, the issuer does limit welcome offer eligibility based on your card history — nominally, you're eligible for one welcome offer per credit card “per lifetime,” but it's not necessarily as simple as that.

Which Chase card is easiest to get?

The easiest Chase credit card to get is the Chase Freedom® Student credit card because applicants can get approved with limited credit. This means the odds of approval are good even for people who are new to credit, making the Chase Freedom® Student credit card much easier to get than other Chase credit cards.

Credit card churning is the process of opening cards for the sole purpose of earning welcome bonuses or other benefits. Usually, it involves closing cards after the bonus posts to your account and before the next annual fee is charged.

If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.

The 1/30 rule is short for "1 card every 30 days," meaning your chances of being approved for a Chase business card are slim to none if you've applied for any card in the last 30 days.

Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.

What is the Chase 5/24 rule? The Chase 5/24 rule is a restriction on who can apply for Chase credit cards. 5/24 is an mnemonic code for "five credit card inquiries in the past 24 months." If you have more than five inquiries, you will likely be denied a Chase credit card.

Number of Cards

Capital One will allow you to have only two of its personal credit cards open at once. This is a hard rule and cannot be overridden. This does not apply to Capital One's co-branded store cards, but these are not the types of cards we typically look at to maximize travel rewards.

How many credit cards can you have with American Express? Generally, you can have up to 5 credit cards with American Express. This includes business credit cards but does not include charge cards like Amex Platinum.

While the number of credit cards you should have is up to you and you can apply for new lines of credit as often as you want, it's a good idea to wait at least 90 days between new credit card applications—and it's even better if you can wait a full six months.

Two Cards Per 30 Days

Chase generally limits credit card approvals to two Chase credit cards per rolling 30-day period. Data points conflict on this but a safe bet is to apply for no more than two personal Chase credit cards or one personal and one business Chase credit card every 30 days.

What is the Chase credit card rule?

"If you've opened more than five credit cards – regardless of issuer – in the last two years you will likely not be approved for a new account," according to a statement from Chase. The 5/24 Rule is one of the most restrictive credit card application rules because it factors in your cards from any bank, not just Chase.

Currently, you can have up to five American Express consumer credit cards at one time. It is important to note that American Express offers multiple types of cards — business cards and consumer cards — and that the rule only applies to consumer cards where you are the primary cardholder.

How Many Inquiries Is Too Many For Amex? In general, when you have 6 hard inquiries, it's too many for Amex. What if you have 6 or more, but haven't applied for credit recently? Partner with a credit repair expert — like Credit Glory — for help disputing & removing fake inquiries.

A credit card can be canceled without harming your credit score⁠. To avoid damage to your credit score, paying down credit card balances first (not just the one you're canceling) is key. Closing a charge card won't affect your credit history (history is a factor in your overall credit score).

Hard inquiries remain in your credit file for up to two years and, depending on how many you have in a short period of time, can negatively impact your credit score. The Chase 5/24 rule, however, does not look at hard inquiries—it looks at credit card accounts that were opened in the past 24 months.

Getting pre-approval for Chase credit cards isn't as easy as it used to be. The online application portal has been removed from the Chase website, making a once simple process a little more complicated. However, there are still a couple of ways to check and see if you've been selected for it.

Chase will report your account activity to the business credit bureaus, which can help you establish a business credit history. The bank won't report anything other than the initial hard inquiry when you apply to the consumer credit bureaus, unless your account is more than 60 days delinquent.

Many American Express credit card applications will be approved immediately. However, if your application status is pending it can take up to 60 days to get a decision. If that happens, you'll be notified by mail once a decision is made.

How often does Chase increase credit limits? Chase may automatically increase your credit limit every six to 12 months if you're a borrower in good standing. Whether or not Chase will automatically increase your credit line depends on several factors, including your credit score, account history and credit utilization.

If you're an existing cardholder and you apply for a new card, Amex will not perform a hard pull on your credit if you get denied. They use the information they have on file for you to conditionally approve you, then perform a hard pull to double-check that there have been no major changes to your credit report.

Does American Express have the 5 24 rule?

While American Express doesn't have a "5/24" rule like Chase does, the issuer does limit welcome offer eligibility based on your card history — nominally, you're eligible for one welcome offer per credit card “per lifetime,” but it's not necessarily as simple as that.

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.

If you're considering a Barclays card: Barclays sometimes applies a 6/24 rule, whereby the issuer won't approve you for a card if you've opened six or more new cards in the past 24 months (this is similar to Chase's 5/24 rule)

Currently, you can have up to five American Express consumer credit cards at one time. It is important to note that American Express offers multiple types of cards — business cards and consumer cards — and that the rule only applies to consumer cards where you are the primary cardholder.

How much do you have to make to get Amex's black card? There aren't any income requirements per se, but you most likely need to be a high spender on your Amex cards. If you're in the ballpark of $250,000 to $500,000 in annual spending across all your open Amex cards, you may qualify for the Centurion card.

If you are applying for multiple Amex cards, simply wait at least six days to ensure you don't get rejected for that second card. You can apply for two Amex cards in one day—as long as one is a charge card and the other a revolving credit card. Otherwise, you won't qualify under the 1-in-5 rule.

Two important notes: Capital One business cards also count toward your 5/24 limit. Technically you become eligible on the first day of the month following the expiration of the 24 month timer on your 5th oldest card (we know, it's kind of 5/25)

The easiest Citi card to get is the Citi® Secured Mastercard®. You don't need any credit history, and the minimum deposit is $200. There's also a $0 annual fee, and the APR can be as high as 25.49% (V).

2/30 Rule. The 2/30 rule says that you can only have two applications every 30 days or else you'll automatically be rejected. If you don't have a high credit score (700+), your chances of getting approved for the Chase Sapphire Reserve® is slim. Chase usually looks for a great credit score or a banking relationship.