5 24 Rule Credit Cards Strategies and Exceptions

The 24 Rule credit cards can be a bit tricky to navigate, but don't worry, I've got you covered. Most credit card issuers require you to make at least the minimum payment on time for 24 months to avoid a penalty.

You can use this rule to your advantage by making timely payments and keeping your balance below the credit limit. This will help you avoid unnecessary fees and keep your credit score intact.

Some credit cards offer exceptions to the 24 Rule, allowing you to make late payments without penalty. These exceptions usually come with specific conditions, such as a minimum payment threshold or a grace period.

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The 5/24 rule is an informal policy by Chase that restricts you from opening a new credit card with them if you've opened five or more credit card accounts in the past 24 months. This rule is well-known among credit card experts and enthusiasts.

Hard inquiries, which are recorded when you apply for new credit, don't affect your 5/24 limit. Instead, it's the number of credit card accounts you've opened in the past 24 months that matters.

To be approved for a Chase card subject to 5/24, you can't have opened five or more personal credit cards across all banks in the last 24 months. This means you need to be under 5/24 to get approved.

Your 5/24 count includes credit cards from all banks, not just Chase.

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To increase your odds of being approved, it's essential to understand the specific policies of each bank and credit card issuer. Most issuers have rules that determine your eligibility for a new card.

You want to do everything in your power to get approved, but even an excellent credit score might not be enough. Banks and credit card issuers have specific policies that can affect your approval chances.

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Timing your applications makes a big difference, as some issuers set restrictions based on your usage of their cards. Others take a broader look at your credit card history and usage overall.

Applying for a Chase card requires being under 5/24, which means you can't have opened five or more personal credit cards across all banks in the last 24 months. This rule only applies to Chase cards, but your 5/24 count includes credit cards from all banks.

To avoid a denial, make sure a full 24 months have passed before you apply for your next Chase card. If your earliest card was opened in July 2022, then wait until July 2024 to apply.

Here are some tips to help you plan ahead:

To understand your credit card status, it's essential to know what counts towards the 5/24 rule. You should count all accounts you've opened within the last 24 months, including authorized user accounts.

Most travel cards issued by Chase are subject to 5/24 for approval, including cobranded cards. The following are cards reported to be subject to the 5/24 rule.

Here's a list of Chase cards that are subject to the 5/24 rule:

Cancelled cards must still be counted towards your 5/24 status, even if you've since cancelled them.

Bypassing the 5/24 rule can be done through targeted "Just for you" offers that appear in your online portal or via mail. These offers may increase your chances of approval, even if you're over 5/24.

Some cardholders have successfully bypassed the rule by getting preapproved for a Chase card by visiting a branch and talking to a banker. However, this method is not guaranteed.

You can attempt a product change within the Chase Ultimate Rewards card family if you've held the card you want to convert for at least a year. But, you won't receive a sign-up bonus for any product change unless you've been specifically targeted for a bonus to upgrade a card.

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Here's a summary of the exceptions to the 5/24 rule:

If you're looking to bypass the 5/24 rule, you may want to try visiting a Chase branch and talking to a banker, as some people report getting approved for a card this way.

Another option is to look for targeted "just for you" offers that come via mail or appear in your online portal.

To check your 5/24 status, you'll need to know which Chase cards are subject to the rule, which includes all Chase credit cards with no known exceptions.

If you're at 5/24 and desperate for a new card, you can attempt a product change within the Chase Ultimate Rewards card family, but be aware that you won't receive a sign-up bonus for any product change unless you've been specifically targeted for a bonus to upgrade a card.

To see if you're targeted for a bonus, navigate to "Just for you" under "Explore products" in the left-hand menu bar when you're logged in to your Chase personal account.

Some cardholders have successfully bypassed the 5/24 rule through targeted "Just for you" offers, so it's worth checking your account regularly for any available offers.

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American Express has a one-time rule for welcome offers, which means you can only receive a welcome offer once per card in your lifetime. This rule is clearly stated in the terms and conditions.

Different variations of cards are counted separately, so if you've gotten a welcome offer on one card, you can still receive a welcome offer on another variation of the same card.

For example, if you've received a welcome offer on The Platinum Card from American Express, you can still receive a welcome offer on The Business Platinum Card from American Express.

American Express also has a limit on the total number of cards you can have open at any time, which has historically been five cards, but may now be four cards.

You won't be approved for more than one American Express card in a five-day period, and no more than two cards within a 90-day period.

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Boosting your credit score, history, and income can make you a more attractive candidate for credit cards, resulting in more generous credit limits and welcome bonus offers.

Timing your credit card applications is crucial, as some issuers set restrictions based on your usage of their cards, while others take a broader look at your credit card history and usage overall.

Applying for Chase credit cards first can be a good strategy, especially since the 5/24 rule tracks all products across issuers.

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Card conversions and upgrades can be a bit tricky, especially when it comes to the 5/24 rule. Ask your bank if a hard credit pull will be completed before making any changes to your card.

A hard credit pull can significantly impact your credit score and may even trigger the 5/24 rule. If you're considering a product change or upgrade, it's essential to ask about this beforehand.

If you'll receive a new account number after the switch, it could be a sign that the account will be considered new and add to your 5/24 standing. This is something to keep in mind when evaluating potential credit card offers.

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The Chase 5/24 rule has some exceptions and limitations you should know about. Credit cards you were denied for are excluded from the count.

Not all credit cards are subject to the Chase 5/24 rule, including small business credit cards (except for specific ones), auto loans, mortgages, and student loans. These types of accounts are not counted towards your 5/24 status.

If you've been approved for five or more cards from any bank in the past 24 months, you may not be approved for a new Chase card. However, you can call the Chase reconsideration line to ask for a credit limit reduction on another card to free up space for your new application.

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Exceptions can be a bit tricky, but they're worth knowing about. The Chase 5/24 rule only applies to credit cards that report to your credit report.

Some types of credit accounts are excluded from the Chase 5/24 rule, including credit cards you were denied for. This is a good thing, as it means you can still apply for those cards even if you've hit your five-account limit.

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Small business credit cards are also excluded, except for those specifically noted above. Auto loans, mortgages, and student loans are all excluded from the Chase 5/24 rule as well.

Here are some types of accounts that are excluded from the Chase 5/24 rule:

It's also worth noting that the Chase 5/24 rule only applies to applications for Chase cards. If you meet the application requirements for a card from Discover or Wells Fargo, you can still apply and be approved.

Knowing the rules and restrictions of credit card issuers is crucial to getting approved for the cards you want. Not all rules are officially documented, but they've been well-documented by applicant data.

Some issuers, like Chase, have specific rules that determine your eligibility for a new card. For example, Chase's 5/24 rule states that you won't be approved for a Chase card if you've been approved for five or more cards from any bank over the past 24 months.

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If you're under 5/24 but have authorized user accounts that put you over, you can have yourself removed from the account and then keep an eye on your credit report. Once the card drops off your credit report, it should no longer count toward your 5/24 status.

Downgrading from one card to another, such as from the Chase Sapphire Reserve to the Chase Sapphire Preferred Card, won't be counted against you. However, authorized user cards from another person's personal card opened in the past 24 months do count toward your 5/24 standing.

The following accounts count toward your 5/24 standing:

The following accounts will not count toward your 5/24 standing: