5/24 Rule Explained: A Simple Guide to Credit Card Approvals

If you’ve ever tried to apply for a new credit card and got denied, you might have heard about the “5/24 rule.” It’s a rule used by a big bank to decide if they’ll give you a card. The idea is simple: they look at how many credit cards you’ve opened in the last 24 months. If the number is five or more, they usually say no.

What the 5/24 Rule Means

When the rule was created, the bank wanted to stop people from opening too many cards at once. Too many new cards can look risky to lenders because it might mean you’re planning to max out credit fast. So they count every credit card you’ve opened, not just the ones with that bank. Student loans, retail cards, and even some store cards count toward the total.

Here’s a quick check: Grab your credit report and count the “opened date” for each account. If you see five or more dates within the last two years, you’re over the limit. That’s why some people keep a close eye on their applications – they don’t want to hit the cap unintentionally.

How to Work Around It

First, plan your applications. If you’re close to five, pause for a few months before applying again. Let older accounts age past the 24‑month window, then you’ll be back under the limit.

Second, consider cards that don’t count toward the rule. Some banks have their own cards that aren’t part of the 5/24 calculation. Research which cards are exempt before you apply.

Third, keep old accounts open even if you stop using them. Closing a card doesn’t erase its “opened date,” and it won’t help your count. It’s better to let the card sit dormant and let the 24‑month clock tick.

Lastly, check your credit report for errors. A mistaken opening date could push you over the limit for no reason. Dispute any wrong info to keep your count accurate.

By staying aware of how many cards you’ve opened and timing your applications, you can avoid the 5/24 roadblock and improve your chances of getting the card you want. Remember, the rule is just one piece of the puzzle – your credit score, income, and payment history still matter a lot.

So next time you think about a new card, glance at your report, count the recent openings, and decide if you’re under or over the 5/24 threshold. A little planning can save you a lot of hassle and keep your credit journey on track.