5/24 Rule: What It Is and How It Affects Your Finances

When you apply for a new credit card, you might run into something called the 5/24 rule, a policy used by Chase and other banks that blocks applicants who’ve opened five or more credit accounts in the past 24 months. Also known as Chase’s 5/24 rule, it’s not a law—it’s a bank’s internal filter to reduce risk. If you’ve opened five or more cards, loans, or lines of credit in the last two years, Chase will likely deny your application, no matter how good your credit score is.

This rule matters because it doesn’t just affect Chase. Other banks watch similar patterns, and opening too many accounts too fast can signal financial stress to credit bureaus. It can hurt your credit score, a three-digit number lenders use to judge how likely you are to repay debt. Also known as FICO score, it drops every time you apply for credit, and too many hard pulls in a short time can lower it by 10 to 20 points per inquiry. Even worse, if you’re chasing sign-up bonuses—like those from travel cards—you might hit the 5/24 limit without realizing it. That’s why smart users track their applications, not just their balances.

The credit utilization, the percentage of your available credit you’re using at any time. Also known as credit usage ratio, it’s one of the biggest factors in your score—aim for under 30%, and ideally under 10%. If you open five cards in two years but keep balances low, your utilization might improve. But if you’re maxing them out or missing payments, your score tanks. The 5/24 rule exists because banks see people who open many cards as higher risk, even if they pay on time. It’s not about how much you owe—it’s about how often you’re asking for new credit.

There’s no official way to bypass the 5/24 rule, but you can work around it. Wait until some of your older accounts fall off the 24-month window. Apply for cards from banks that don’t use this rule, like Citi or Bank of America. Or focus on cards that don’t count as "credit accounts"—like store cards or auto loans—though those still show up on your report. If you’re trying to build credit or earn rewards, patience beats speed every time.

Below, you’ll find real-world examples of how people manage the 5/24 rule, what happens when they ignore it, and how to use credit cards without getting locked out of the best offers. Whether you’re chasing travel points or just trying to improve your score, these posts give you the facts—not the fluff.