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What is the 5/24 rule for credit cards and how does it work?

Summary:Learn about the credit cards 5/24 rule and how it impacts your ability to qualify for certain credit cards. Discover exceptions and tips for managing your credit cards.


Credit cards are a convenient tool for making purchases and building credit. But with so many options available, it can be difficult to choose the right one. One important factor to consider is the 5/24 rule for credit cards. This rule can impact your ability to qualify for certain credit cards, so it's important to understand how it works.

What is the 5/24 rule for credit cards?

The 5/24 rule is a guideline used by manycredit card issuersto determine whether or not to approve an application for a new credit card. The rule states that if you have opened five or more credit card accounts in the past 24 months, you will not be approved for a new credit card from certain issuers.

How does it work?

The 5/24 rule is applied by some of the largest credit card issuers in the United States, including Chase, Citi, and American Express. When you apply for a new credit card from one of these issuers, they will review your credit report to see how many new accounts you have opened in the past 24 months.

If you have opened five or more credit card accounts in that time period, your application will likely be denied. This is because having too many new accounts can be seen as a sign of financial instability and may indicate that you are taking on more debt than you can handle.

Exceptions to the rule:

There are some exceptions to the 5/24 rule. For example, some issuers may not count certain types of accounts towards the five-account limit, such as business credit cards or authorized user accounts. Additionally, some issuers may waive the rule for customers who have existing relationships with the bank, such as having a mortgage or other loan with them.

Tips for managing your credit cards:

If you want to avoid running afoul of the 5/24 rule, it's important to manage your credit cards carefully. Here are a few tips to help you stay on track:

1. Only apply for credit cards that you really need, and be sure to read the terms and conditions carefully before applying.

2. Keep track of how many credit card accounts you have opened in the past 24 months, and avoid opening too many accounts in a short period of time.

3. Pay your credit card bills on time and in full each month to avoid late fees and interest charges.

4. Monitor your credit score regularly to ensure that it is accurate and up-to-date.

5. Consider consolidating your credit card debt into a single account with a low interest rate to help you pay off your balances more quickly.


The 5/24 rule is an important consideration for anyone who is looking to apply for a new credit card. By understanding how the rule works and managing your credit cards responsibly, you can avoid running into problems and get the most out of your credit card accounts. Remember to always read the fine print and stay on top of your finances to ensure that you are making the best decisions for your financial future.

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