Editor’s word: It is a recurring put up, often up to date with new info.
In the event you’re comparatively new to the factors and miles world, you could be a bit gun-shy when making use of for brand new bank cards. Most of my family and friends members discover it onerous to imagine that I at present have greater than 15 lively journey bank cards in my pockets and pay over $1,000 per yr in annual charges.
Each week, I hear one thing like, “Aren’t you afraid that you just’ll wreck your credit score rating?” Whereas it’s true that card purposes will briefly decrease your rating because of the new onerous inquiries in your profile, many different components go into calculating the credit score rating.
Nonetheless, you wish to make sure that any purposes you submit have a excessive likelihood of being authorized. In any case, if an software is denied, you’re taking a tough inquiry in your credit score report (and the ensuing momentary drop in your rating) with none upside.
Many prime issuers have added further restrictions over years that make it more durable to get authorized for a brand new card and/or earn a welcome supply, so it’s vital to know which financial institution has what guidelines earlier than you apply.
When you can by no means assure that your software can be authorized, you wish to keep away from losing an software when you don’t have any probability at success.
Methodology
On this information, I’ll take you thru the restrictions for the entire main issuers in the marketplace in the present day: American Specific, Financial institution of America, Barclays, Capital One, Chase, Citi and Wells Fargo.
For this evaluation, I’ll have a look at three predominant components to contemplate for every issuer as you intend your software technique:
- Variety of playing cards.
- Quantity and timing of purposes.
- Welcome bonuses.
One disclaimer earlier than diving in: most of those restrictions aren’t thought of hard-and-fast guidelines relevant to each situation. I’ve heard tales of exceptions to only about each one.
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You would utterly ignore a restriction and nonetheless get authorized and earn a welcome bonus, or you could possibly comply with each advice completely but nonetheless get denied for a card. Because the saying goes, YMMV (your mileage could fluctuate).
American Specific
Variety of playing cards
One of many first steps banks take throughout an financial downturn is to tighten their lending and approval requirements to reduce danger. For the reason that pandemic inflicted heavy injury to almost each sq. inch of the U.S. financial system, Amex took a decisive step on this route by implementing a four-credit-card restrict for every particular person. Nonetheless, they’ve since upped this to 5 playing cards.
Previously, I’ve learn remoted reviews of readers carrying greater than 5 American Specific bank cards at anybody time.
We strongly discourage everybody from ever carrying a stability — it really tops TPG’s 10 commandments for journey rewards bank cards. Carrying a stability and accruing curiosity will greater than negate any factors or miles you earn on the cardboard and negatively have an effect on your credit score rating.
Quantity and timing of purposes
With regards to American Specific’ guidelines for what number of purposes you may have and the way incessantly you may submit them, once more, there aren’t any printed, hard-and-fast necessities. Nonetheless, I did discover a number of information factors that will assist you resolve the way to apply:
- You’ll be able to apply for 2 playing cards in a single day. Nonetheless, many reviews point out that not less than one software will possible be placed on maintain as a fraud prevention mechanism, particularly when you’re making use of for 2 playing cards. As well as, there’s no assure that these purposes can be mixed right into a single onerous inquiry in your credit score report, though it does occur.
- You could possibly get authorized for greater than two playing cards in a 90-day interval. Nonetheless, most of those reviews mixed credit score and pay-in-full playing cards with out spending limits (previously often known as cost playing cards). In consequence, the overall rule of thumb is that you just shouldn’t apply for 3 or extra Amex bank cards inside three months.
Welcome affords
Amex restricts cardmembers from incomes a welcome supply greater than as soon as per lifetime — regardless of how lengthy it’s been because you utilized. For instance, right here’s the particular language from the supply phrases web page for The Platinum Card® from American Specific:
“Welcome supply not out there to candidates who’ve or have had this card or earlier variations of The Platinum Card®. We may think about the variety of American Specific playing cards you’ve gotten opened and closed in addition to different components in making a call in your welcome supply eligibility.”
That sentence is crystal clear: when you at present have (or have had) this specific card, you aren’t eligible to earn the welcome supply (at present 80,000 Membership Rewards Factors after you spend $6,000 on purchases inside the first six months of card membership.).
There’s related language on the applying pages throughout Amex’s complete portfolio of playing cards, each enterprise and private. It even extends to earlier variations of playing cards in sure cases, such because the Hilton Honors American Specific Surpass® Card:
“You is probably not eligible to obtain a welcome supply when you’ve got or have had this Card or earlier variations of this Card or the Hilton Honors Amex Ascend Card.”
You lose eligibility for future Amex welcome affords by carrying a bank card, not by incomes the bonus on it. This is the reason it’s best to at all times assume twice about upgrading or downgrading an Amex card, particularly if there’s no bonus hooked up.
Notice: Private and enterprise variations of the identical card are handled as separate, so try to be eligible to earn the welcome supply on each as soon as throughout your life.
Test your eligibility
American Specific has a website software that means that you can double-check your eligibility for a welcome supply. This verify takes place through the software course of. Earlier than formally making use of for a card, Amex means that you can withdraw the applying when you’re not eligible for the bonus — earlier than Amex performs a tough inquiry in your credit score report. This eligibility software additionally invokes the second phrase of legalese that’s been added to most Amex bank card purposes:
“American Specific may think about the variety of American Specific Playing cards you’ve gotten opened and closed in addition to different components in making a call in your welcome supply eligibility.”
In different phrases, even when you’ve by no means held a selected Amex bank card, the issuer’s proprietary anti-fraud algorithm may decide that you just’re not eligible to earn a bonus. We don’t know precisely what behaviors this method flags, however issues like closing a bank card as quickly as you earn the welcome supply (and even closing it precisely one yr after you opened it) don’t look good.
Given these restrictions, you’ll wish to time your purposes very effectively to make sure you get the best doable welcome supply. Don’t neglect to verify the CardMatch software to establish when you qualify for doable improved affords increased than the publicly marketed bonus (affords topic to alter at any time).
There’s one notable exception to this rule, nevertheless. Amex will often goal cardholders for a product they’ve already had, permitting them to earn one other welcome supply. Simply learn the high-quality print of those focused affords to see if there’s “lifetime language” within the phrases.
Associated: Selecting the very best American Specific bank card for you
Financial institution of America
Variety of playing cards
Financial institution of America doesn’t have hard-and-fast guidelines concerning what number of whole playing cards you may have.
On condition that it was beforehand doable to get authorized for multiples of the identical card in a really brief time interval (which has since modified, as we’ll focus on), there are many clients with Financial institution of America playing cards numbering into the double digits.
Quantity and timing of purposes
Financial institution of America was some of the versatile issuers when it got here to approving purposes. This started to alter in 2017 and has since grow to be often known as the two/3/4 rule:
- You’ll be able to solely get authorized for two new playing cards in a 30-day interval.
- You’ll be able to solely get authorized for 3 new playing cards in a 12-month interval.
- You’ll be able to solely get authorized for 4 new playing cards in a 24-month interval.
In consequence, you could possibly get authorized for the Alaska Airways Visa® bank card and the Financial institution of America® Premium Rewards® bank card when you apply for each on the identical day or inside the identical month. However when you then apply for an additional Financial institution of America card inside two months of those purposes, you’ll possible be denied. Knowledge factors point out that this doesn’t prolong to enterprise bank cards issued by the financial institution.
Financial institution of America’s 2/3/4 rule has been formally communicated by the issuer’s customer support reps to candidates, although it’s value noting that it isn’t posted on-line. It additionally solely applies to playing cards issued by Financial institution of America (they don’t think about playing cards opened from different issuers). That stated, the financial institution should still think about the whole variety of playing cards and onerous inquiries you’ve had when it runs your credit score, so you might get denied even when you fall beneath these thresholds.
Anecdotally, we’ve seen information factors of additional restrictions. Prospects with a Financial institution of America deposit account is probably not authorized for brand new playing cards in the event that they’ve opened seven playing cards (throughout all issuers) within the final 12 months, whereas clients with no deposit account can be rejected in the event that they’ve opened three or extra playing cards within the final 12 months.
Final however not least, Financial institution of America restricts cardholders from opening a card in the event that they at present carry it or have opened it in a 24-month time interval. Right here’s the language discovered on the phrases of the Alaska Airways card:
“This card is probably not out there to you when you at present have or have had the cardboard within the previous 24 month interval. This doesn’t apply to the enterprise bank card product.”
Associated: The perfect Financial institution of America bank cards
Welcome bonuses
When you make it by way of these restrictions and get authorized, the financial institution has no printed language limiting your sign-up bonuses.
You’ll be able to earn a sign-up bonus on the identical card a number of instances, so long as your purposes are timed given the above guidelines and also you’re authorized for the cardboard.
Barclays
Variety of playing cards
Barclays usually doesn’t restrict the variety of playing cards you’ve gotten open with them at anybody time. The financial institution will, nevertheless, think about your total credit score profile earlier than approving you, as famous by the next language on most of its card software pages:
“If on the time of your software you don’t meet the credit score or earnings standards beforehand established for this supply, or the earnings you report is inadequate primarily based in your present obligations, we will be unable to open an account for you.”
Given this info, plainly numerous playing cards, a excessive variety of onerous inquiries or giant balances should still impression your possibilities of efficiently opening a brand new card.
Quantity and timing of purposes
Barclays isn’t identified to have any particular guidelines or insurance policies like 5/24 when making use of for brand new playing cards. Nonetheless, there are just a few common guidelines of thumb to comply with when you’re trying to apply for a number of playing cards issued by the financial institution in a brief time frame:
- You possible gained’t get authorized for a number of purposes on the identical day, even when you name reconsideration.
- It’s good to cancel an present card after which anticipate a time frame earlier than re-applying for that card (the advice is six months).
- Barclays has been identified to take a look at prior spending on present playing cards to find out approval for a brand new card. In the event you’re taking a look at a brand new one and at present have a card or two with the issuer and haven’t spent a lot (or something), take it out of your desk drawer and use it for just a few months earlier than making use of.
Once more, these aren’t concrete guidelines however common pointers to comply with.
Welcome bonuses
With regards to bonuses, Barclays usually hasn’t prevented you from incomes the sign-up bonus on a card a number of instances, so long as you shut the cardboard first after which wait to use (typically six months). Nonetheless, the issuer does have a few notable objects within the phrases and situations of well-liked playing cards, such because the JetBlue Plus Card:
“You is probably not eligible for this supply when you at present have or beforehand had an account with us on this program. As well as, you is probably not eligible for this supply if, at any time throughout our relationship with you, now we have trigger, as decided by us in our sole discretion, to suspect that the account is being obtained or can be used for abusive or gaming exercise (similar to, however not restricted to, acquiring or utilizing the account to maximise rewards earned in a way that’s not in keeping with typical shopper exercise and/or a number of bank card account purposes/openings).”
The obscure wording right here means, in a worst-case situation, you could possibly be authorized for a brand new card as a earlier cardholder, meet the minimal spending threshold and nonetheless miss out on a sign-up bonus if Barclays decides you’re ineligible for any of the above causes.
Whereas you will have a legit cause for getting a second iteration of a card (e.g., a brand new job with in depth journey on JetBlue), simply bear in mind {that a} sign-up bonus is probably not a part of the bundle.
The data for the JetBlue Plus card and has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or offered by the cardboard issuer.
Capital One
Variety of playing cards
In contrast to most others on this record, Capital One restricts the variety of private playing cards you’ve gotten in your pockets to 2.
In consequence, when you’ve got the Capital One SavorOne Money Rewards Credit score Card and the Capital One Quicksilver Money Rewards Credit score Card, you gained’t be capable to open the Capital One Enterprise Rewards Credit score Card to benefit from that card’s World Entry/TSA PreCheck payment credit score (as much as $100).
Notice that this usually solely applies to private playing cards managed by Capital One — cobranded and small-business playing cards (such because the Capital One Spark Miles for Enterprise) are typically excluded.
Quantity and timing of purposes
Capital One additionally has a hard-and-fast rule when timing your purposes. You’re solely in a position to get authorized for one card each six months. This lumps private and small-business playing cards collectively.
Whereas that is probably the most stringent rule of the issuers on this record, the two-card restrict famous above signifies that you aren’t actually lacking out on a lot by being pressured to attend not less than six months between purposes. Capital One can also be extremely delicate to current inquiries. Many individuals (myself included) have acquired a number of rejection letters for the Capital One Enterprise Rewards Card regardless of a virtually excellent credit score rating.
Welcome bonuses
The issuer has been identified to award sign-up bonuses a number of instances on the identical card when you comply with the above guidelines and are authorized. Nonetheless, like Barclays, I see some language on the web site for many Capital One playing cards that provides the issuer the proper to not award the bonus. Right here’s the particular verbiage from the Capital One Enterprise card software web page:
“The bonus is probably not out there for present or earlier accountholders.”
As soon as once more, the obscure time period “is probably not out there” implies that you just could be rolling the cube on making use of for a brand new card and incomes a bonus when you’re a present or previous cardholder.
Associated: The perfect Capital One bank cards
Chase
Variety of playing cards
From what we are able to inform, Chase doesn’t formally restrict the variety of bank cards you may have. I at present have seven Chase-issued playing cards:
The data for the IHG Rewards Membership Choose card has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or offered by the cardboard issuer.
Different TPG staffers have much more playing cards. In consequence, it’s comparatively protected to imagine that Chase doesn’t put a tough ceiling on the variety of playing cards you may have.
Nonetheless, the issuer usually restricts how a lot whole credit score is prolonged to you throughout all of your Chase playing cards. For instance, let’s say you’ve gotten 4 Chase bank cards with $25,000 credit score traces on every, and Chase has decided that it’s best to solely have a complete spending restrict of $100,000. It’s uncertain that you just’ll be instantly authorized for an additional bank card. This isn’t as a result of it’s your fifth card — it’s merely a perform of Chase deciding that it’s best to solely have a mixed credit score line of $100,000 throughout all of your accounts.
Luckily, all hope is just not misplaced if this occurs. You’ll be able to name Chase’s reconsideration line inside just a few days of your software and ask to shift round credit score traces to get approval. You’ll then have 5 bank cards with the identical $100,000 whole credit score. I had to do that just a few instances once I first constructed my credit score historical past with Chase, though I haven’t needed to on my final two purposes.
Quantity and timing of purposes
There isn’t a proper, constant coverage that limits the quantity or timing of your purposes with Chase. The final rule of thumb is to restrict purposes to no a couple of private and one enterprise card inside 90 days. Nonetheless, I’ve additionally learn reviews of candidates being authorized for 2 private playing cards in a month.
It’s additionally value pausing to speak about danger tolerance right here. Chase (and Amex) have been identified to unilaterally shut all accounts of customers they deem high-risk or probably fraudulent. Sadly, on paper, award journey fans who apply for a number of playing cards in a yr may be mistaken for dangerous clients.
You may wish to think about taking issues slower and never dashing by way of your purposes with Chase, even when there’s an opportunity you will get authorized for extra playing cards in a shorter interval. One widespread thread I’ve heard amongst Chase shutdown tales was a barrage of current credit score inquiries (with Chase and different issuers) within the months main as much as the shutdown.
Chase 5/24 rule
Chase’s one hard-and-fast software rule is usually often known as the 5/24 rule. In the event you’ve opened 5 or extra bank cards with any issuer over the earlier 24 months, you’ll possible be denied for many Chase-issued bank cards with little to no probability of reconsideration.
Just a few notes about this coverage:
- Chase will have a look at all accounts throughout all issuers (not simply their very own).
- You could get authorized when you’re simply a licensed person. Whereas success isn’t assured, you could possibly get across the 5/24 rule when you’re simply a licensed person on any of your “new” accounts from the earlier two years. Just a few years again, TPG’s Nick Ewen was instantly getting denied for a United Explorer Card. Nonetheless, he efficiently received a telephone agent to rethink his software as a result of the fifth new account on his credit score report at the moment was really his spouse’s. Relying in your private circumstances, you may wish to think about eradicating your self as a licensed person and ready 30-60 days to use, so there’s much less probability of the system robotically rejecting you.
- Enterprise playing cards typically don’t rely. Though you record your Social Safety quantity once you apply for enterprise playing cards, the accounts themselves sit on a separate enterprise credit score report and, as such, often don’t rely towards your 5/24 standing.
Associated: Wish to open a brand new Chase card? Right here’s the way to calculate your 5/24 standing
Welcome bonuses
Chase additionally imposes restrictions on incomes welcome bonuses, although these aren’t as strict as American Specific’. Usually, you gained’t be capable to earn a bonus on a Chase card when you at present maintain that card in your pockets or when you earned a sign-up bonus on that precise card within the final 24 to 48 months.
Right here’s the particular language on most Chase playing cards’ software pages (this was copied from the Chase Freedom Limitless‘s web page):
“This product is on the market to you when you should not have this card and haven’t acquired a brand new cardmember bonus for this card previously 24 months.”
In different phrases, you should cancel or downgrade a card earlier than reapplying for it, however you don’t want to attend two years to use after canceling. The 24-month ready interval begins once you obtain the bonus, not once you cancel the cardboard.
It’s additionally value noting that some slight variations to this coverage apply to particular playing cards:
Associated: The perfect Chase bank cards
Citi
Variety of playing cards
Citi usually doesn’t restrict your total variety of bank cards. They use an strategy of limiting your total credit score throughout all Citi playing cards. When you’ve reached that tipping level, you’ll possible be given the “software pending” discover once you apply for a brand new card.
That stated, one in every of my colleagues was instantly denied a Citi card as a result of he had reached the “most variety of Citi bank cards.” It’s unclear if that was primarily based on the variety of Citi playing cards he had open on the time of his software (seven) or if it was primarily based on the variety of playing cards he had opened with the issuer throughout his complete lifetime.
Citi can also be identified to be extremely delicate to current inquiries, so after you’ve used up your 5/24 slots with Chase, you may think about making use of for Citi playing cards earlier than your credit score report will get too cluttered.
Quantity and timing of purposes
Citi has exact guidelines for a way incessantly you may apply for bank cards. There are barely completely different guidelines for private and enterprise playing cards:
- You’ll be able to solely apply for one card (private or enterprise) each eight days and not more than two playing cards in a 65-day window.
- You’ll be able to solely apply for one enterprise card each 90 days.
Sure, there are exceptions. Comply with these pointers for the very best outcomes, although.
Citi 48-month rule
Sadly, Citi is stricter with its bank cards than different issuers. On most of its ThankYou points-earning and cobranded playing cards, you may have to attend 48 months to earn the welcome bonus once more. For instance, this is the language discovered on the Citi Premier® Card:
“Bonus ThankYou® Factors aren’t out there when you’ve got acquired a brand new account bonus for a Citi Premier account previously 48 months.”
So when you opened a Citi Premier card in June 2021 and earned the sign-up bonus, then canceled the cardboard in June 2022, you may have to attend till June 2025 to use and earn the bonus once more.
Associated: The perfect Citi bank cards
Wells Fargo
Variety of playing cards
Wells Fargo typically doesn’t restrict the variety of playing cards you may have, however the regular suggestions apply concerning your total credit score profile. They reserve the proper, nevertheless, per the bank card software pages:
“We may restrict the whole variety of open Wells Fargo bank card accounts you’ve gotten.”
Quantity and timing of purposes
We don’t have a lot information concerning the variety of purposes you may have with the financial institution. Nonetheless, you’ll find this assertion on the phrases and situations web page for many Wells Fargo-issued playing cards that’s value repeating right here:
“You could not qualify for a further Wells Fargo bank card when you’ve got opened a Wells Fargo bank card within the final six months.”
As soon as once more, we run into that obscure “could not” language, indicating that you could possibly be denied a brand new Wells Fargo card when you’ve got one with the financial institution lower than six months previous.
Backside line
Sadly, when you misunderstand the nuances of every issuer’s software restrictions, you could possibly be left with a tough inquiry, a missed welcome bonus, or, even worse, a tough inquiry with a flat-out denial.
Whereas the insurance policies above are a mixture of “guidelines” and “pointers,” I’d strongly encourage you to pay shut consideration to them as you intend out your subsequent set of purposes.
Further reporting by Ryan Wilcox, Stella Shon, Joseph Hostetler and Chris Dong.
