In the event you’re comparatively new to the factors and miles world, you is perhaps a bit hesitant to use for brand new bank cards. Most of my family and friends members discover it laborious to consider that I’ve greater than 15 energetic 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 will wreck your credit score rating?” Whereas it is true that card purposes will quickly decrease your rating because of the new laborious inquiries in your profile, many different elements go into calculating a credit score rating.
Nonetheless, you need to make sure that any purposes you submit have a excessive chance of being authorized. In any case, if an utility is denied, you are taking a tough inquiry in your credit score report (and the ensuing short-term drop in your rating) with none upside.
Many prime issuers have further restrictions that make it tougher to get authorized for a brand new card and/or earn a welcome provide, so it is necessary to know which financial institution has what guidelines earlier than you apply.
When you can by no means assure that your utility shall be authorized, you need to keep away from losing an utility when you don’t have any likelihood at success.
Associated: Tips on how to apply for a bank card
Methodology
On this information, I am going to clarify the restrictions for these issuers: American Specific, Financial institution of America, Barclays, Capital One, Chase, Citi and Wells Fargo.
For this evaluation, I am going to take a look at three predominant elements to contemplate for every issuer as you intend your utility technique:
- Variety of playing cards
- Quantity and timing of purposes
- Welcome bonuses
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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.
You can utterly ignore a restriction and nonetheless get authorized and earn a welcome bonus, or you might comply with each advice completely but nonetheless get denied for a card. Because the saying goes, your mileage could differ.
Associated: The perfect bank card welcome bonuses this month
American Specific
Variety of playing cards
Amex has a five-credit-card restrict for every particular person, together with private and enterprise playing cards. Nevertheless, this does not embrace playing cards with no preset spending restrict.
Nevertheless, I’ve learn remoted stories of readers carrying greater than 5 American Specific bank cards at anybody time.
Quantity and timing of purposes
In relation to American Specific’ guidelines for what number of purposes you possibly can have and the way steadily you possibly can submit them, once more, there are no revealed, hard-and-fast necessities. Nevertheless, I did discover a number of information factors which will aid you resolve the right way to apply:
- You may apply for 2 playing cards in a single day. Nevertheless, many stories point out that at the least one utility will seemingly be placed on maintain as a fraud prevention mechanism, particularly in case you’re making use of for 2 playing cards. Moreover, there isn’t any assure that these purposes shall be mixed right into a single laborious inquiry in your credit score report, though it does occur.
- You might be able to get authorized for greater than two playing cards in a 90-day interval. Nevertheless, most of those stories mixed credit score and pay-in-full playing cards with out spending limits (previously referred to as cost playing cards). In consequence, the final rule of thumb is that you simply should not apply for 3 or extra Amex bank cards inside three months.
Welcome provides
Amex restricts cardmembers from incomes a welcome provide greater than as soon as per lifetime, regardless of how lengthy it has been because you utilized. For instance, this is the particular language from the provide phrases web page for The Platinum Card® from American Specific:
“You is probably not eligible to obtain a welcome provide if in case you have or have had this Card, the Platinum Card® from American Specific Completely for Charles Schwab, the Platinum Card® from American Specific Completely for Morgan Stanley or earlier variations of those Playing cards.”
That sentence is crystal clear: In the event you presently have (or have had) this explicit card, you aren’t eligible to earn the welcome provide.
Related language seems on the applying pages throughout Amex’s total portfolio of playing cards, each enterprise and private. In sure cases, it even extends to earlier variations of playing cards.
Amex additionally has welcome provide restrictions based mostly on having playing cards throughout the similar household. For instance, in case you maintain the top-tier Amex Platinum, you will not be eligible for the welcome provide on the mid-tier American Specific® Gold Card, because it has language stating:
“You is probably not eligible to obtain a welcome provide if in case you have or have had this Card, the Premier Rewards Gold Card, the Platinum Card®, the Platinum Card® from American Specific Completely for Charles Schwab, the Platinum Card® from American Specific Completely for Morgan Stanley or earlier variations of those Playing cards.”
You lose eligibility for future Amex welcome provides by carrying a card, not by incomes the bonus on it. This is the reason you must all the time suppose twice about upgrading or downgrading an Amex card, particularly if there isn’t any bonus connected.
Word: Private and enterprise variations of the identical card are handled as separate, so you need to be eligible to earn the welcome provide on each as soon as throughout your life.
The knowledge for the Amex Platinum for Charles Schwab, Amex Platinum for Morgan Stanley and the Premium Rewards Gold has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.
Test your eligibility
American Specific has a device that lets you double-check your eligibility for a welcome provide in the course of the utility course of. Earlier than formally making use of for a card, Amex lets you withdraw the applying in case you’re not eligible for the bonus so you possibly can keep away from having a tough inquiry in your credit score report for a card you might not obtain the welcome provide.
Moreover, Amex will often goal cardmembers for a product they’ve already had, permitting them to earn one other welcome provide. Simply learn the high-quality print of those focused provides to see if there’s “lifetime language” within the phrases.
Associated: Finest American Specific bank cards
Financial institution of America
Variety of playing cards
Financial institution of America would not have hard-and-fast guidelines relating to what number of complete playing cards you possibly can have.
Beforehand, you might get authorized for multiples of the identical card in a really quick time interval. There are many clients with Financial institution of America playing cards within the double digits.
Quantity and timing of purposes
Financial institution of America has what’s referred to as the two/3/4 rule, which means:
- You may solely get authorized for 2 new playing cards in a 30-day interval.
- You may solely get authorized for 3 new playing cards in a 12-month interval.
- You may solely get authorized for 4 new playing cards in a 24-month interval.
Information factors point out that this doesn’t prolong to enterprise bank cards issued by the financial institution.
The financial institution might also nonetheless take into account the entire variety of playing cards and laborious inquiries you’ve got had when it runs your credit score, so you could get denied even in case you fall under these thresholds.
Anecdotally, we have 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 shall 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 could prohibit cardholders from opening a card in the event that they presently carry it or have opened it in some unspecified time in the future over the previous 24 months.
Welcome bonuses
When you overcome these restrictions and are authorized, the financial institution has no revealed language limiting your welcome bonuses. You may earn a welcome bonus on the identical card a number of occasions, so long as you are authorized for the cardboard.
Associated: Finest Financial institution of America bank cards
Barclays
Variety of playing cards
Barclays sometimes would not restrict the variety of playing cards you could have open with them at anybody time. The financial institution will, nonetheless, take into account your total credit score profile earlier than approving you.
Evidently numerous playing cards, a excessive variety of laborious inquiries or massive balances could influence your possibilities of efficiently opening a brand new card.
Quantity and timing of purposes
Barclays might be extraordinarily inquiry-sensitive, so I like to recommend being below 6/24 earlier than making use of for this card. In different phrases, you should not have opened greater than 5 playing cards up to now 24 months earlier than making use of for a Barclays card.
Listed below are just a few normal guidelines of thumb to comply with in case you’re trying to apply for a number of playing cards issued by the financial institution in a brief time frame:
- You seemingly will not get authorized for a number of purposes on the identical day, even in case you name the reconsideration line.
- You have to cancel an current card and wait six months earlier than reapplying.
- Barclays has been identified to take a look at prior spending on current 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 presently have a card or two with the issuer and have not spent a lot (or something), take it out of your sock drawer and use it for just a few months earlier than making use of.
Once more, these aren’t concrete guidelines however are as an alternative normal tips to comply with.
Welcome bonuses
In relation to bonuses, Barclays sometimes hasn’t prevented you from incomes the welcome bonus on a card a number of occasions, so long as you shut the cardboard first after which wait to use (typically six months). Nevertheless, the issuer does have a few notable objects within the phrases and circumstances of fashionable playing cards, such because the JetBlue Plus Card:
“You is probably not eligible for this provide in case you presently have or beforehand had an account with us on this program. As well as, you is probably not eligible for this provide if, at any time throughout our relationship with you, we now have trigger, as decided by us in our sole discretion, to suspect that the account is being obtained or shall be used for abusive or gaming exercise (akin to, however not restricted to, acquiring or utilizing the account to maximise rewards earned in a way that isn’t according to 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 might be authorized for a brand new card as a earlier cardholder, meet the minimal spending threshold and miss out on a welcome bonus if Barclays decides you are ineligible for any of the above causes.
The knowledge for the JetBlue Plus Card has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.
Associated: Finest Barclays bank cards
Capital One
Variety of playing cards
Capital One doesn’t present official data on the variety of playing cards you possibly can maintain with the issuer, however information factors counsel that the restrict is perhaps 5 playing cards.
Quantity and timing of purposes
Capital One additionally has a hard-and-fast rule when timing your purposes. You are solely in a position to get authorized for one card each six months. This lumps private and small-business playing cards collectively.
Capital One can be extremely delicate to latest inquiries. Many individuals (myself included) have acquired a number of rejection letters for the Capital One Enterprise Rewards Credit score Card regardless of an almost good credit score rating.
Welcome bonuses
The issuer has been identified to award welcome bonuses a number of occasions on the identical card in case you comply with the above guidelines and are authorized. Nevertheless, like Barclays, I see some language on the web site for some Capital One playing cards that offers the issuer the correct to not award the bonus. This is the particular language on the Capital One Enterprise Rewards card utility web page:
“Present or earlier cardmembers are usually not eligible for this product if they’ve acquired a brand new cardmember bonus for this product up to now 48 months.”
Associated: Finest Capital One bank cards
Chase
Variety of playing cards
Chase would not formally restrict the variety of bank cards you possibly can have. I’ve seven Chase-issued playing cards; different TPG staffers have much more playing cards. In consequence, it is comparatively secure to imagine that Chase would not put a tough ceiling on the variety of playing cards you possibly can have.
Nevertheless, the issuer usually restricts how a lot complete credit score is prolonged to you throughout all of your Chase playing cards. For instance, as an instance you could have 4 Chase bank cards with $25,000 credit score traces on every, and Chase has decided that you must solely have a complete credit score restrict of $100,000.
It is unlikely that you will be authorized for an additional bank card since you’ve reached your mixed credit score line of $100,000 throughout all of your accounts.
Thankfully, you possibly can name Chase’s reconsideration line inside just a few days of your utility and ask to have your credit score traces shifted to get authorized. You will then have 5 bank cards with the identical $100,000 complete credit score.
Quantity and timing of purposes
There is not a proper, constant coverage that limits the quantity or timing of your purposes with Chase. The overall rule of thumb is to restrict purposes to no multiple private and one enterprise card inside 90 days. Nonetheless, I’ve learn stories of candidates being authorized for 2 private playing cards in a month.
It is also 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 doubtlessly fraudulent. Sadly, on paper, award journey lovers who apply for a number of playing cards in a yr might be mistaken for dangerous clients.
You may not need to rush by your purposes with Chase, even when there’s an opportunity you will get authorized for extra playing cards in a shorter interval. One widespread pattern I’ve heard amongst Chase shutdown tales was a barrage of latest credit score inquiries (throughout all issuers, together with Chase) within the months main as much as the shutdown.
Chase 5/24 rule
Chase’s one hard-and-fast utility rule is 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 seemingly be denied for many Chase-issued bank cards with little to no likelihood of reconsideration.
A number of notes about this coverage:
- Chase will take a look at all accounts throughout all issuers (not simply its personal).
- Whereas success is not assured, you might be able to get across the 5/24 rule in case you’re simply a licensed consumer on any of your “new” accounts from the earlier two years. A number of years again, TPG senior editorial director Nick Ewen was getting instantly denied for a United℠ Explorer Card (see charges and charges). Nevertheless, he efficiently acquired a cellphone agent to rethink his utility as a result of the fifth new account on his credit score report at the moment was truly his spouse’s. Relying on private circumstances, you would possibly need to take away your self as a licensed consumer and wait 30 to 60 days to use so there is a decrease chance of the system routinely rejecting you.
- Enterprise playing cards typically do not rely. Though you checklist your Social Safety quantity if you apply for enterprise playing cards, the accounts themselves sit on a separate enterprise credit score report and, as such, often don’t rely in opposition to your 5/24 standing. Nevertheless, Chase typically takes your 5/24 rely into consideration if you’re making use of for considered one of its enterprise playing cards.
Associated: Wish to open a brand new Chase card? This is the right way to calculate your 5/24 standing
Welcome bonuses
Chase additionally imposes restrictions on incomes welcome bonuses. Generally, you will not be capable of earn a bonus on a Chase card in case you presently maintain that card or earned a welcome bonus on that precise card within the final 24 months.
This is the particular language on most Chase playing cards’ utility pages. For instance, the Chase Freedom Limitless®’s web page (see charges and charges) states:
“This product is just not obtainable to both (i) present cardmembers of this bank card, or (ii) earlier cardmembers of this bank card who acquired a brand new cardmember bonus for this bank card throughout the final 24 months.”
So, it’s essential to cancel or downgrade a card earlier than reapplying for it. The 24-month ready interval begins if you obtain the bonus, not if you cancel the cardboard.
It is also value noting that some slight variations to this coverage apply to particular playing cards:
- Sapphire playing cards: The welcome bonus guidelines on Sapphire playing cards just lately modified. You is probably not eligible for a Sapphire bonus in case you presently maintain one of many Sapphire playing cards. Nevertheless, in case you are not a Sapphire buyer, you could be eligible for a bonus if in case you have not acquired a welcome provide from a selected Sapphire product. Moreover, in case you acquired a Sapphire welcome bonus on a particular card up to now, in case you reapply for that card, you’ll probably not be eligible to obtain one other Sapphire welcome bonus on that specific product.
- Southwest Airways playing cards: You can not earn a Southwest private card bonus in case you’ve earned one up to now 24 months. This is applicable to the private Southwest playing cards.
- Eligibility for all Marriott Bonvoy playing cards: Chase and American Specific have teamed as much as make it tougher to be authorized for Marriott bank cards. Which means that not solely are the Marriott Bonvoy Boundless® Credit score Card (see charges and charges) and the Marriott Bonvoy Daring® Credit score Card (see charges and charges) restricted by the 5/24 rule, however whether or not you could have or have had any of the Amex Bonvoy playing cards additionally elements in. For extra data on Marriott Bonvoy bank card eligibility, see this information.
Associated: Finest Chase bank cards
Citi
Variety of playing cards
Citi sometimes would not restrict your total variety of bank cards; as an alternative, it limits your total credit score throughout all Citi playing cards. As soon as you’ve got reached that tipping level, you will seemingly be given the “utility pending” discover if you apply for a brand new card.
A fast name to Citi’s reconsideration line ought to aid you get authorized by transferring some credit score from one other card to the brand new one.
Citi can be identified to be extremely delicate to latest inquiries, so after you’ve got used up your 5/24 slots with Chase, you would possibly take into account making use of for Citi playing cards.
Quantity and timing of purposes
Citi has exact guidelines for a way steadily you possibly can apply for bank cards. There are barely completely different guidelines for private and enterprise playing cards:
- You may solely apply for one card (private or enterprise) each eight days and not more than two playing cards in a 65-day window.
- You may solely apply for one enterprise card each 90 days.
Sure, there are exceptions, however these are tips for the very best outcomes.
Citi 48-month rule
Citi is stricter with its bank cards than different issuers. On most of its playing cards, you will have to attend 48 months to earn the welcome bonus once more. For instance, this is the language discovered on the Citi Strata Premier® Card (see charges and charges):
“Bonus ThankYou® Factors are usually not obtainable in case you acquired a brand new account bonus for a Citi Premier® or Citi Strata Premier® account up to now 48 months or in case you transformed one other Citi bank card account on which you earned a brand new account bonus within the final 48 months right into a Citi Premier® or Citi Strata Premier® account.”
So, in case you opened a Citi Premier Card (not obtainable to new candidates) in June 2022 and earned the welcome bonus, then canceled the cardboard in June 2023, you will have to attend till June 2026 to use for the Citi Strata Premier and earn the bonus once more.
The knowledge for the Citi Premier card has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.
Associated: Finest Citi bank cards
Wells Fargo
Variety of playing cards
Wells Fargo typically would not restrict the variety of playing cards you possibly can have, however the regular suggestions apply relating to your total credit score profile.
Quantity and timing of purposes
We do not have a lot information concerning the variety of purposes you possibly can have with the financial institution. Nevertheless, you’ll find this assertion on the phrases and circumstances web page for many Wells Fargo-issued playing cards:
“You could not qualify for an extra Wells Fargo-branded shopper bank card if in case you have opened a Wells Fargo-branded shopper bank card within the final 6 months.”
As soon as once more, we encounter that obscure “could not” language, which signifies that you might be denied a brand new Wells Fargo card if in case you have one with the financial institution that’s lower than 6 months outdated.
Wells Fargo may also be inquiry-sensitive. TPG bank cards editor Olivia Mittak was just lately denied for a Wells Fargo card as a result of she had opened too many new playing cards up to now 24 months. As a rule of thumb, it is best to be below 5/24 earlier than making use of for a Wells Fargo card. This is not a particular rule, only a suggestion for elevating your possibilities of approval.
Associated: Finest Wells Fargo playing cards
Backside line
Journey bank cards are a good way to rapidly add factors and miles to your varied loyalty account balances. Many carry a wealth of invaluable perks along with an preliminary bonus.
Sadly, in case you misunderstand the nuances of every issuer’s utility restrictions, you might 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 “tips,” I might strongly encourage you to pay shut consideration to them as you intend out your subsequent set of purposes.
Associated: How to decide on the very best bank card for you
