cancel
Showing results for 
Search instead for 
Did you mean: 

5/24 Rule Decision Advice

ActiveTraderNQ100
Regular Contributor

5/24 Rule Decision Advice

Hi,

 

I have a total of 4 cards, 3 opened since March 2019. The last HP that resulted in a new account was Dec 2019 for Citi DC, and the last HP overall was January 2020 with WF to inquire about a limit increase which they denied. I have a total of 5 inquiries since March 2019, 3 for new accounts all approved, 1 for Mortgage Prequalify, and 1 for CLI.

 

I want to open another card with no annual and Chase has sent me offers for the Freedome Unlimited, Freedom, Slate, and Sapphire Preferred. All but one offers no annual fee. I already have a 1.5% cash back card with Capital One and so I more than likely will go with the Freedom card with quarterly 5% categories. Unless there is a better option with another credit card that has SP CLI and similar options for more cash back opportunities.

 

The reason I bring this up is because I know chase has the 5/24 rule, I am wondering if I should go ahead and apply with them to avoid being denied in the near future or is it too late to take chance? I do not want to apply and get denied either because of my recent inquiries or my activity overall in the last year.

 

I am late to buidling my credit because I wrecked it 5+ years ago. I believe Chase and Discover has the same 5% quarterly categories, and if I want a CLI I am not sure which one does a SP or HP. Just looking for anyone who has some insight on this. To my knowledge Discover does not have 5/24 but they are not accepted as much as the Chase Freedom card is.

 

AAoA (TU) - 5yrs 8mo

TU - 717

EQ - 768

FICO 3 - 739

 

Current Credit Cards:

WF Platinum Visa - $900

Capital One Venture One - $6000

Capital One QuickSilver - $3500

Citi Double Cash - $6900

 

Overall Utilization is under 10% 

 

 




Message 1 of 7
6 REPLIES 6
angelwingz
Valued Contributor

Re: 5/24 Rule Decision Advice

The 5/24 rule is really YMMV, but the fact that your most recent card account opened was only in December plus the others you've opened in the last year I would wait to apply. 




My Cards:






Profile Type: New, Thick, 100% Clean
INQ's: EQ: 0 TU: 1 EX: 3 (last 12 mo.)
Recent Accounts: 4 (last 24 mo.)
Total CL: 28.95k Util. 3% AAoA: 1yr, 8mo.
AoOA: 2 yrs, 8 mo. AoYA: 0 mo. 100% PIF.





myFICO Member since: July 21, 2018 | Joined Community: Aug. 17, 2018 | Starting Scores: EQ: 716 TU: 738 EX: 698
Message 2 of 7
ActiveTraderNQ100
Regular Contributor

Re: 5/24 Rule Decision Advice


@angelwingz wrote:

The 5/24 rule is really YMMV, but the fact that your most recent card account opened was only in December plus the others you've opened in the last year I would wait to apply. 


Fair enough, if I hold off on the Chase would it be a waste of time to go for the Discover account if they don't have the 5/24 rule? In 2019 I applied for cards in March, September, December. I am assuming that since it's only March now I should wait until at least June?




Message 3 of 7
Anonymous
Not applicable

Re: 5/24 Rule Decision Advice

5/24 applies to new accounts, not inquiries.  You wouldn't be denied for 5/24 itself since you don't have 5 new accounts, but with so many recent accounts, they may still deny you.

 

I'd wait until the Citi DC hits 6 months and maybe then apply.

 

Message 4 of 7
ActiveTraderNQ100
Regular Contributor

Re: 5/24 Rule Decision Advice


@Anonymous wrote:

5/24 applies to new accounts, not inquiries.  You wouldn't be denied for 5/24 itself since you don't have 5 new accounts, but with so many recent accounts, they may still deny you.

 

I'd wait until the Citi DC hits 6 months and maybe then apply.

 


Thanks will do, I just anticipate lending will tighten in the coming months and could impact my approval odds/limits. I guess I was trying to get in front of that.




Message 5 of 7
seattletravels
Valued Contributor

Re: 5/24 Rule Decision Advice

Discover is SP for CLI. Chase is HP.



Last App: BECU 02-26-2020
Pronouns: He/Him/His
Message 6 of 7
ActiveTraderNQ100
Regular Contributor

Re: 5/24 Rule Decision Advice


@seattletravels wrote:

Discover is SP for CLI. Chase is HP.


For a 5% rotating category card, seems easier to go with Discover since they do SP CLI and do a cash back match. Hopefully they keep the same offer when I get a chance to apply in a few months.




Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.