Which Banks Use the 5/24 Rule for Credit Cards?

The ‘5/24 rule’ is an unofficial policy used by certain credit card issuers, denying applicants a new credit card if they have opened five or more new credit accounts across all banks within the past 24 months. Understanding which financial institutions employ this policy is important for individuals planning credit card applications. This approach helps banks manage risk and discourage practices focused solely on earning sign-up bonuses.

Banks That Implement the 5/24 Rule

The primary bank known for strictly implementing the 5/24 rule for its credit card applications is Chase. If your credit report shows five or more new credit card accounts opened by any issuer in the last 24 months, your application for most Chase credit cards will likely be denied, regardless of your credit score or income.

The 5/24 rule affects nearly all of Chase’s consumer credit cards, including popular travel rewards cards and co-branded cards. While not officially published by Chase, its consistent application is widely observed. This policy helps Chase manage risk from individuals opening many new accounts quickly.

For Chase business credit cards, you generally need to be under the 5/24 limit for approval. If approved, most Chase business card accounts typically do not add to your 5/24 count because they usually do not appear on your personal credit report. This offers flexibility for business owners seeking to expand their credit card portfolio without impacting their personal 5/24 status.

Banks That Do Not Implement the 5/24 Rule

While Chase is prominent for its 5/24 rule, many other major banks do not adhere to this restriction. These institutions have their own unique application rules, which can vary significantly.

For instance, American Express has a “once per lifetime” rule for welcome bonuses, meaning you can typically only earn a sign-up bonus for a specific card product once. American Express also generally limits consumers to a maximum of five credit cards and ten charge cards open at any given time.

Citi has its own set of guidelines, including restrictions on how frequently you can apply for cards, such as one card every eight days and no more than two cards within 65 days. Additionally, Citi often imposes a “48-month rule” for welcome bonuses, limiting eligibility for a bonus on the same card to once every four years.

Bank of America also employs various internal rules, such as the “2/3/4 rule,” which restricts approvals to two new cards in two months, three in 12 months, and four in 24 months, specifically for their own cards.

Capital One does not have a 5/24 rule like Chase, but it may deny applications if you have opened too many new accounts recently, or if you apply for another Capital One card within six months of a previous approval. Other banks like Discover, Wells Fargo, Barclays, and U.S. Bank also maintain their own application policies. These may include limits on new accounts over shorter periods or sensitivity to recent credit inquiries, but none operate under the 5/24 framework. These varying rules highlight the importance of understanding each issuer’s specific criteria before applying for new credit.

Understanding Your 5/24 Status

To determine your 5/24 status, you should count the number of new credit accounts opened in your name within the last 24 months, regardless of the issuing bank. This includes personal credit cards from any issuer, such as those from American Express, Capital One, or Citi. Even if a credit card account has since been closed, it still counts towards your 5/24 total if it was opened within the 24-month window.

Authorized user accounts on another individual’s credit card typically count towards your 5/24 status because they appear on your personal credit report. However, if an authorized user account pushes you over the limit, it may be possible to have it excluded by contacting the credit card issuer’s reconsideration line or the credit bureaus directly.

Store credit cards, especially those that can be used outside a specific retailer, also generally count if they report to your personal credit report. Certain types of accounts typically do not count towards your 5/24 status.

Most business credit cards are generally excluded because they often do not appear on your personal credit report. Exceptions include business cards from Discover, TD Bank, and some Capital One business cards, which may report to personal credit and therefore contribute to your count.

Other common types of credit, such as mortgages, auto loans, student loans, and personal loans or lines of credit (PLOCs/HELOCs), do not typically factor into the 5/24 calculation. Applications that were denied also do not count towards your 5/24 total. The most reliable way to check your 5/24 status is by reviewing your personal credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. You can obtain free copies of your reports annually through AnnualCreditReport.com. Carefully examine the “date opened” for each credit card account listed to determine how many were opened within the most recent 24-month period. This precise count allows you to assess your eligibility for credit cards from banks that implement the 5/24 rule.