The last word information to bank card utility restrictions

For those who’re comparatively new to the factors and miles world, you may be a bit hesitant to use for brand new bank cards. Most of my family and friends members discover it arduous 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 functions will briefly decrease your rating because of the new arduous inquiries in your profile, many different components go into calculating a credit score rating.

Nonetheless, you wish to be sure that any functions you submit have a excessive chance of being permitted. In spite of everything, 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 extra restrictions that make it tougher to get permitted for a brand new card and/or earn a welcome supply, so it is essential to know which financial institution has what guidelines earlier than you apply.

When you can by no means assure that your utility can be permitted, you wish to keep away from losing an utility when you haven’t any likelihood at success.

Associated: How you can apply for a bank card

Methodology

On this information, I will clarify the restrictions for these issuers: American Specific, Financial institution of America, Barclays, Capital One, Chase, Citi and Wells Fargo.

For this evaluation, I will have a look at three essential components to think about for every issuer as you propose your utility technique:

• Variety of playing cards
• Quantity and timing of functions
• 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.

You would utterly ignore a restriction and nonetheless get permitted and earn a welcome bonus, or you could possibly observe each advice completely but nonetheless get denied for a card. Because the saying goes, your mileage might range.

Associated: The most effective 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 studies of readers carrying greater than 5 American Specific bank cards at anyone time.

Quantity and timing of functions

In the case of American Specific’ guidelines for what number of functions you’ll be able to have and the way ceaselessly you’ll be able to submit them, once more, there are not any revealed, hard-and-fast necessities. Nevertheless, I did discover a number of information factors which will allow you to resolve find out how to apply:

• You’ll be able to apply for 2 playing cards in a single day. Nevertheless, many studies point out that no less than one utility will probably be placed on maintain as a fraud prevention mechanism, particularly in case you’re making use of for 2 playing cards. Moreover, there is no assure that these functions can be mixed right into a single arduous inquiry in your credit score report, though it does occur.
• You might be able to get permitted for greater than two playing cards in a 90-day interval. Nevertheless, most of those studies mixed credit score and pay-in-full playing cards with out spending limits (previously often known as cost playing cards). Consequently, the final rule of thumb is that you just should not apply for 3 or extra Amex bank cards inside three months.

Welcome presents

Amex restricts cardmembers from incomes a welcome supply greater than as soon as per lifetime, regardless of how lengthy it has been because you utilized. For instance, this is the precise language from the supply phrases web page for The Platinum Card® from American Specific:

“You will not be eligible to obtain a welcome supply when you’ve got or have had this Card, the Platinum Card® from American Specific Solely for Charles Schwab, the Platinum Card® from American Specific Solely for Morgan Stanley or earlier variations of those Playing cards.”

That sentence is crystal clear: For those who at present have (or have had) this specific card, you aren’t eligible to earn the welcome supply.

Comparable language seems on the applying pages throughout Amex’s total portfolio of playing cards, each enterprise and private. In sure situations, it even extends to earlier variations of playing cards.

Amex additionally has welcome supply restrictions primarily based on having playing cards inside the identical household. For instance, in case you maintain the top-tier Amex Platinum, you will not be eligible for the welcome supply on the mid-tier American Specific® Gold Card, because it has language stating:

“You will not be eligible to obtain a welcome supply when you’ve got or have had this Card, the Premier Rewards Gold Card, the Platinum Card®, the Platinum Card® from American Specific Solely for Charles Schwab, the Platinum Card® from American Specific Solely for Morgan Stanley or earlier variations of those Playing cards.”

You lose eligibility for future Amex welcome presents by carrying a card, not by incomes the bonus on it. That is why you must all the time assume twice about upgrading or downgrading an Amex card, particularly if there is no bonus hooked up.

Word: Private and enterprise variations of the identical card are handled as separate, so you need to be eligible to earn the welcome supply on each as soon as throughout your life.

The data 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.

Verify your eligibility

American Specific has a instrument that permits you to double-check your eligibility for a welcome supply through the utility course of. Earlier than formally making use of for a card, Amex permits you to withdraw the applying in case you’re not eligible for the bonus so you’ll be able to keep away from having a tough inquiry in your credit score report for a card you could possibly not obtain the welcome supply.

Moreover, Amex will often goal cardmembers for a product they’ve already had, permitting them to earn one other welcome supply. Simply learn the advantageous print of those focused presents to see if there’s “lifetime language” within the phrases.

Associated: Greatest American Specific bank cards

Financial institution of America

Variety of playing cards

Financial institution of America does not have hard-and-fast guidelines relating to what number of complete playing cards you’ll be able to have.

Beforehand, you could possibly get permitted for multiples of the identical card in a really quick time interval. There are many prospects with Financial institution of America playing cards within the double digits.

Quantity and timing of functions

Financial institution of America has what’s often known as the two/3/4 rule, that means:

• You’ll be able to solely get permitted for 2 new playing cards in a 30-day interval.
• You’ll be able to solely get permitted for 3 new playing cards in a 12-month interval.
• You’ll be able to solely get permitted for 4 new playing cards in a 24-month interval.

Knowledge factors point out that this doesn’t prolong to enterprise bank cards issued by the financial institution.

The financial institution can also nonetheless take into account the full variety of playing cards and arduous inquiries you’ve got had when it runs your credit score, so chances are you’ll get denied even in case you fall under these thresholds.

Anecdotally, we have seen information factors of additional restrictions. Clients with a Financial institution of America deposit account will not be permitted for brand new playing cards in the event that they’ve opened seven playing cards (throughout all issuers) within the final 12 months, whereas prospects with out a 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 might limit cardholders from opening a card in the event that they at present carry it or have opened it sooner or later over the previous 24 months.

Welcome bonuses

When you overcome these restrictions and are permitted, the financial institution has no revealed language limiting your welcome bonuses. You’ll be able to earn a welcome bonus on the identical card a number of occasions, so long as you are permitted for the cardboard.

Associated: Greatest Financial institution of America bank cards

Barclays

Variety of playing cards

Barclays sometimes does not restrict the variety of playing cards you’ve gotten open with them at anyone time. The financial institution will, nevertheless, take into account your total credit score profile earlier than approving you.

Evidently numerous playing cards, a excessive variety of arduous inquiries or massive balances might affect your possibilities of efficiently opening a brand new card.

Quantity and timing of functions

Barclays might be extraordinarily inquiry-sensitive, so I like to recommend being underneath 6/24 earlier than making use of for this card. In different phrases, you should not have opened greater than 5 playing cards previously 24 months earlier than making use of for a Barclays card.

Listed here are a couple of normal guidelines of thumb to observe in case you’re trying to apply for a number of playing cards issued by the financial institution in a brief time period:

• You probably will not get permitted for a number of functions on the identical day, even in case you name the reconsideration line.
• It’s essential cancel an current card and wait six months earlier than reapplying.
• Barclays has been recognized to take a look at prior spending on current playing cards to find out approval for a brand new card. For those who’re a brand new one and at present 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 a couple of months earlier than making use of.

Once more, these aren’t concrete guidelines however are as an alternative normal pointers to observe.

Welcome bonuses

In the case of 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 in style playing cards, such because the JetBlue Plus Card:

“You will not be eligible for this supply in case you at present have or beforehand had an account with us on this program. As well as, you will not be eligible for this supply if, at any time throughout our relationship with you, we’ve got 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 (comparable to, however not restricted to, acquiring or utilizing the account to maximise rewards earned in a fashion that isn’t in step with typical shopper exercise and/or a number of bank card account functions/openings).”

The imprecise wording right here means, in a worst-case situation, you could possibly be permitted 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 data 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: Greatest Barclays bank cards

Capital One

Variety of playing cards

Capital One doesn’t present official data on the variety of playing cards you’ll be able to maintain with the issuer, however information factors recommend that the restrict may be 5 playing cards.

Quantity and timing of functions

Capital One additionally has a hard-and-fast rule when timing your functions. You are solely capable of get permitted for one card each six months. This lumps private and small-business playing cards collectively.

Capital One can also be extremely delicate to latest inquiries. Many individuals (myself included) have obtained a number of rejection letters for the Capital One Enterprise Rewards Credit score Card regardless of a virtually good credit score rating.

Welcome bonuses

The issuer has been recognized to award welcome bonuses a number of occasions on the identical card in case you observe the above guidelines and are permitted. 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 precise 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 obtained a brand new cardmember bonus for this product previously 48 months.”

Associated: Greatest Capital One bank cards

Chase

Variety of playing cards

Chase does not formally restrict the variety of bank cards you’ll be able to have. I’ve seven Chase-issued playing cards; different TPG staffers have much more playing cards. Consequently, it is comparatively secure to imagine that Chase does not put a tough ceiling on the variety of playing cards you’ll be able to have.

Nevertheless, the issuer typically restricts how a lot complete credit score is prolonged to you throughout all of your Chase playing cards. For instance, for instance you’ve gotten 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 permitted for one more bank card since you’ve reached your mixed credit score line of $100,000 throughout all of your accounts.

Luckily, you’ll be able to name Chase’s reconsideration line inside a couple of days of your utility and ask to have your credit score traces shifted to get permitted. You will then have 5 bank cards with the identical $100,000 complete credit score.

Quantity and timing of functions

There is not a proper, constant coverage that limits the quantity or timing of your functions with Chase. The final rule of thumb is to restrict functions to no multiple private and one enterprise card inside 90 days. Nonetheless, I’ve learn studies of candidates being permitted for 2 private playing cards in a month.

It is also value pausing to speak about threat tolerance right here. Chase (and Amex) have been recognized to unilaterally shut all accounts of customers they deem high-risk or doubtlessly fraudulent. Sadly, on paper, award journey fanatics who apply for a number of playing cards in a yr might be mistaken for dangerous prospects.

You won’t wish to rush via your functions with Chase, even when there’s an opportunity you may get permitted for extra playing cards in a shorter interval. One widespread development 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. For those who’ve opened 5 or extra bank cards with any issuer over the earlier 24 months, you’ll probably be denied for many Chase-issued bank cards with little to no likelihood of reconsideration.

Just a few notes about this coverage:

• Chase will have 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 certified consumer on any of your “new” accounts from the earlier two years. Just a few years again, TPG senior editorial director Nick Ewen was getting instantly denied for a United℠ Explorer Card (see charges and costs). Nevertheless, he efficiently obtained a telephone agent to rethink his utility as a result of the fifth new account on his credit score report at the moment was really his spouse’s. Relying on private circumstances, you would possibly wish to take away your self as a certified consumer and wait 30 to 60 days to use so there is a decrease chance of the system robotically rejecting you.
• Enterprise playing cards typically do not depend. Despite the fact that you listing 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 depend towards your 5/24 standing. Nevertheless, Chase typically takes your 5/24 depend into consideration if you’re making use of for one in all its enterprise playing cards.

Associated: Wish to open a brand new Chase card? This is find out how to calculate your 5/24 standing

Welcome bonuses

Chase additionally imposes restrictions on incomes welcome bonuses. Basically, you will not be capable of earn a bonus on a Chase card in case you at present maintain that card or earned a welcome bonus on that precise card within the final 24 months.

This is the precise language on most Chase playing cards’ utility pages. For instance, the Chase Freedom Limitless®’s web page (see charges and costs) states:

“This product will not be obtainable to both (i) present cardmembers of this bank card, or (ii) earlier cardmembers of this bank card who obtained a brand new cardmember bonus for this bank card inside the final 24 months.”

So, you should 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 will not be eligible for a Sapphire bonus in case you at present maintain one of many Sapphire playing cards. Nevertheless, in case you are now not a Sapphire buyer, chances are you’ll be eligible for a bonus when you’ve got not obtained a welcome supply from a specific Sapphire product. Moreover, in case you obtained a Sapphire welcome bonus on a selected card previously, in case you reapply for that card, you’ll probably not be eligible to obtain one other Sapphire welcome bonus on that exact product.
• Southwest Airways playing cards: You can not earn a Southwest private card bonus in case you’ve earned one previously 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 permitted for Marriott bank cards. Which means that not solely are the Marriott Bonvoy Boundless® Credit score Card (see charges and costs) and the Marriott Bonvoy Daring® Credit score Card (see charges and costs) restricted by the 5/24 rule, however whether or not you’ve gotten or have had any of the Amex Bonvoy playing cards additionally components in. For extra data on Marriott Bonvoy bank card eligibility, see this information.

Associated: Greatest Chase bank cards

Citi

Variety of playing cards

Citi sometimes does 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 may probably be given the “utility pending” discover if you apply for a brand new card.

A fast name to Citi’s reconsideration line ought to allow you to get permitted by transferring some credit score from one other card to the brand new one.

Citi can also be recognized 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 functions

Citi has exact guidelines for the way ceaselessly you’ll be able to 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, however these are pointers for the most effective outcomes.

Citi 48-month rule

Citi is stricter with its bank cards than different issuers. On most of its 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 Strata Premier® Card (see charges and costs):

“Bonus ThankYou® Factors are usually not obtainable in case you obtained a brand new account bonus for a Citi Premier® or Citi Strata Premier® account previously 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 (now not obtainable to new candidates) in June 2022 and earned the welcome bonus, then canceled the cardboard in June 2023, you may have to attend till June 2026 to use for the Citi Strata Premier and earn the bonus once more.

The data 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: Greatest Citi bank cards

Wells Fargo

Variety of playing cards

Wells Fargo typically does not restrict the variety of playing cards you’ll be able to have, however the regular suggestions apply relating to your total credit score profile.

Quantity and timing of functions

We do not have a lot information concerning the variety of functions you’ll be able to have with the financial institution. Nevertheless, you will discover 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 when you’ve got opened a Wells Fargo-branded shopper bank card within the final 6 months.”

As soon as once more, we encounter that imprecise “might not” language, which signifies that you could possibly be denied a brand new Wells Fargo card when you’ve got one with the financial institution that’s lower than 6 months outdated.

Wells Fargo will 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 previously 24 months. As a rule of thumb, it is best to be underneath 5/24 earlier than making use of for a Wells Fargo card. This is not a selected rule, only a suggestion for elevating your possibilities of approval.

Associated: Greatest Wells Fargo playing cards

Backside line

Journey bank cards are an effective way to rapidly add factors and miles to your varied loyalty account balances. Many carry a wealth of precious perks along with an preliminary bonus.

Sadly, in case you misunderstand the nuances of every issuer’s utility 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 might strongly encourage you to pay shut consideration to them as you propose out your subsequent set of functions.

Associated: How to decide on the most effective bank card for you