All the major credit card issuers have different rules when it comes to applying for credit cards, whether it involves approval, earning the welcome bonus, etc. I’ve written about Chase’s rules when it comes to applying for cards, and one of the biggest restrictions is what we often refer to as the 5/24 rule. This was first introduced a couple of years ago, but has been expanded quite a bit since then.
I’ve explained the policy in the past, though there’s one consistent point of confusion readers seem to have, which I figured I’d cover in this post. But first let me recap the basics of the 5/24 rule:
What is Chase’s 5/24 policy?
With Chase’s 5/24 policy, you typically won’t be approved for a Chase card if you’ve opened five or more new accounts in the past 24 months. This is more of a general guideline than a strict rule, though. Here’s what you should know about 5/24:
- A vast majority of new credit card accounts will count towards that limit, meaning that opening five or more cards in 24 months will make you ineligible for virtually all Chase cards
- One exception is most business cards, like The Business Platinum® Card from American Express, The American Express® Business Gold Card, The Blue Business℠ Plus Credit Card from American Express, etc., don’t count towards this limit; however, Capital One business cards do count towards that limit
- There are people who report not having any issues being approved for a card even though they surpassed the 5/24 rule, so it’s not consistently enforced
- Previously the 5/24 rule didn’t apply to all Chase cards, meaning that there were some Chase cards you could still easily be approved for if you had opened five or more card accounts in the past 24 months; among these cards was the IHG® Rewards Club Premier Credit Card
- This is mostly anecdotal, since Chase doesn’t officially publish this restriction for most cards
What confuses people about the 5/24 rule
Reader CA805JV asked the following in the Ask Lucky forum, and it’s a question I get asked all the time:
Hi, I have a question regarding the Chase IHG Card and the 5/24 rule. I’m currently at 3/24 and am very interested in the Chase IHG card. I know one can get this card if they are over 5/24, but what happens I f they’re below? If I get this card will my 3/24 become 4/24?
I understand where the confusion comes from. Typically when I write about cards I try to make the rules around approvals clear. So when I wrote about a card like the IHG Card in the past, I said that the card wasn’t subject to Chase’s 5/24 rule. That’s to say that you could potentially have been approved even if you’d opened five or more card accounts in the past 24 months.
As of mid-November, however, all Chase cards seem to be subject to 5/24, so this is a bit of a moot point.
That doesn’t mean that applying for the card didn’t count as an application for the purposes of applying for other Chase cards in the future. In other words, if you’ve opened four card accounts in the past 24 months and then apply for the IHG Card, you’ll then be at 5/24, and likely ineligible for cards like the Chase Sapphire Preferred® Card, Ink Business Preferred℠ Credit Card, etc.
The only cards you can apply for that don’t increase the number of new accounts that show as open on your credit report are select business cards. This typically includes Amex and Chase business cards, but not those issued by Capital One.
So hopefully this clears that up, and especially clears up what’s meant when I say a card is or isn’t subject to the 5/24 rule.