5/24 Rule Decision Advice

[Anonymous]

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% 

[Anonymous]

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. 

[Anonymous]

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@Anonymous 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. 

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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?

[Anonymous]

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.

[Anonymous]

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@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.

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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.

[seattletravels]

Discover is SP for CLI. Chase is HP.

[Anonymous]

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@seattletravels wrote:

Discover is SP for CLI. Chase is HP.

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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.