Can someone explain the 5/24 rule really simply? I know that it applies to Chase cards—does it apply to any other cards as well?
The Chase 5/24 rule is actually very simple. If you or any applicant have already opened 5 (or more) credit card accounts in the last 24 months, your application will be denied.
As for other cards, each bank has different rules for their applications. Some rules restrict whether or not you can open a new card/account. However, this 5/24 rule applies only to Chase and should not be thought of when dealing with other banks.
The Chase 5/24 states that if the customer has already opened 5 or more credit card accounts in the last 24 months, which includes any other cards reported to his/her personal credit report as well as any cards opened, Chase will then not approve any application for certain credit cards from that customer. The Chase Sapphire Reserve, Chase Freedom, Chase Freedom Unlimited and the Chase Sapphire Preferred Card are some of the cards that have been reported as 5/24 cards. However, keep in mind that this rule applies only to Chase.
The Chase 5/24 rule only applies to Chase cards, and it prevents you from being approved for additional Chase cards if you have already opened five or more credit cards within 24 months. However, these five cards can be from any issuer. Essentially, opening five or more credit cards within the past 24 months puts you in a blackout for being approved for any Chase cards, but once you are out of this period, you may be able to qualify for one again.
It is also important to note that the 5/24 rule does not apply to every Chase card, though it does apply to the majority of them, including its top rewards credit cards. This includes the Chase Sapphire Preferred, the Chase Sapphire Reserve, Chase Freedom, Chase Freedom Unlimited and Chase Slate cards. Some co-branded Chase credit cards are also affected by the rule, including the IHG Rewards Club Premier Credit Card, Marriott Bonvoy Boundless Credit Card, United Explorer Card and more.
Chase’s Ink business cards and its co-branded business cards with travel partners are also affected, but it is important to note that opening a new Chase business card will not count toward your 5/24 standing. So if you’re at 4/24, you will still be at 4/24 after you open a new Chase business card. However, if you are already at 5/24, you will not be able to open a new Chase credit card, business or not.
You can find all the card mentioned above (plus more) here.