The last word information to bank card software restrictions

For those who’re comparatively new to the factors and miles world, you is perhaps a bit hesitant to use for brand spanking new bank cards. Most of my family and friends members discover it exhausting to consider that I’ve 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’re going to wreck your credit score rating?” Whereas it is true that card functions will briefly decrease your rating as a result of new exhausting inquiries in your profile, many different components go into calculating a credit score rating.

Nonetheless, you need to be sure that any functions you submit have a excessive chance of being accepted. In any case, if an software is denied, you are taking a exhausting inquiry in your credit score report (and the ensuing momentary drop in your rating) with none upside.

Many high issuers have extra restrictions that make it tougher to get accepted 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 software shall be accepted, you need to keep away from losing an software when you don’t have any likelihood at success.

Associated: Learn how to apply for a bank card

Methodology

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

For this evaluation, I will have a look at three most important components to think about for every issuer as you intend your software 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 can fully ignore a restriction and nonetheless get accepted and earn a welcome bonus, or you would comply with each advice completely but nonetheless get denied for a card. Because the saying goes, your mileage might differ.

Associated: The perfect bank card welcome bonuses this month

American Categorical

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 embody playing cards with no preset spending restrict.

Nevertheless, I’ve learn remoted stories of readers carrying greater than 5 American Categorical bank cards at anyone time.

Quantity and timing of functions

In relation to American Categorical’ guidelines for what number of functions you’ll be able to have and the way often you’ll be able to submit them, once more, there are not any printed, hard-and-fast necessities. Nevertheless, I did discover a number of knowledge factors which will provide help to determine the way to apply:

• You may apply for 2 playing cards in a single day. Nevertheless, many stories point out that at the very least one software will probably be placed on maintain as a fraud prevention mechanism, particularly should you’re making use of for 2 playing cards. Moreover, there isn’t any assure that these functions shall be mixed right into a single exhausting inquiry in your credit score report, though it does occur.
• You might be able to get accepted 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 often known as cost playing cards). In consequence, the overall rule of thumb is that you simply should not 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, irrespective of how lengthy it has been because you utilized. For instance, here is the precise language from the supply phrases web page for The Platinum Card® from American Categorical:

“You will not be eligible to obtain a welcome supply when you have or have had this Card, the Platinum Card® from American Categorical Completely for Charles Schwab, the Platinum Card® from American Categorical Completely 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 explicit card, you aren’t eligible to earn the welcome supply.

Comparable language seems on the applying pages throughout Amex’s complete 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 based mostly on having playing cards throughout the similar household. For instance, should you maintain the top-tier Amex Platinum, you will not be eligible for the welcome supply on the mid-tier American Categorical® Gold Card, because it has language stating:

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

You lose eligibility for future Amex welcome affords by carrying a card, not by incomes the bonus on it. That is why 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 ought to be eligible to earn the welcome supply on every one 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.

Examine your eligibility

American Categorical has a instrument that means that you can double-check your eligibility for a welcome supply throughout the software course of. Earlier than formally making use of for a card, Amex means that you can withdraw the applying should 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 would 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 high-quality print of those focused affords to see if there’s “lifetime language” within the phrases.

Associated: Finest American Categorical bank cards

Financial institution of America

Variety of playing cards

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

Beforehand, you would get accepted for multiples of the identical card in a really brief time interval. There are many clients 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, which means:

• You may solely get accepted for 2 new playing cards in a 30-day interval.
• You may solely get accepted for 3 new playing cards in a 12-month interval.
• You may solely get accepted 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 might also nonetheless think about the entire variety of playing cards and exhausting inquiries you have had when it runs your credit score, so you might get denied even should you fall under these thresholds.

Anecdotally, we have seen knowledge factors of additional restrictions. Clients with a Financial institution of America deposit account will not be accepted for brand spanking new playing cards in the event that they’ve opened seven playing cards (throughout all issuers) within the final 12 months, whereas clients and not using a 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 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 accepted, the financial institution has no printed language proscribing your welcome bonuses. You may earn a welcome bonus on the identical card a number of instances, so long as you are accepted for the cardboard.

Associated: Finest Financial institution of America bank cards

Barclays

Variety of playing cards

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

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

Quantity and timing of functions

Barclays will 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 prior to now 24 months earlier than making use of for a Barclays card.

Listed below are just a few basic guidelines of thumb to comply with should you’re trying to apply for a number of playing cards issued by the financial institution in a brief time frame:

• You probably will not get accepted for a number of functions on the identical day, even should you name the reconsideration line.
• You want to cancel an present card and wait six months earlier than reapplying.
• Barclays has been recognized to have a look at prior spending on present playing cards to find out approval for a brand new card. For those who’re taking a look at 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 just a few months earlier than making use of.

Once more, these aren’t concrete guidelines however are as a substitute basic pointers 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 instances, so long as you shut the cardboard first after which wait to use (usually six months). Nevertheless, the issuer does have a few notable objects within the phrases and situations of common playing cards, such because the JetBlue Plus Card:

“You will not be eligible for this supply should 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 shall be used for abusive or gaming exercise (similar to, however not restricted to, acquiring or utilizing the account to maximise rewards earned in a fashion that’s not in line 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 would be accepted 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 info on the variety of playing cards you’ll be able to maintain with the issuer, however knowledge factors recommend that the restrict is perhaps 5 playing cards.

Quantity and timing of functions

Capital One additionally has a hard-and-fast rule when timing your functions. You are solely in a position to get accepted 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 excellent credit score rating.

Welcome bonuses

The issuer has been recognized to award welcome bonuses a number of instances on the identical card should you comply with the above guidelines and are accepted. Nevertheless, like Barclays, I see some language on the web site for some Capital One playing cards that provides the issuer the correct to not award the bonus. Here is the precise language on the Capital One Enterprise Rewards card software web page:

“Present or earlier cardmembers aren’t eligible for this product if they’ve acquired a brand new cardmember bonus for this product prior to now 48 months.”

Associated: Finest 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. In consequence, 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 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’ve 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’re going to be accepted 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 just a few days of your software and ask to have your credit score traces shifted to get accepted. You may 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 overall rule of thumb is to restrict functions to no a couple of private and one enterprise card inside 90 days. Nonetheless, I’ve learn stories of candidates being accepted 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 recognized 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 will be mistaken for dangerous clients.

You may not need to rush via your functions with Chase, even when there’s an opportunity you will get accepted 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 software 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 should you’re simply a licensed 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 charges). Nevertheless, he efficiently acquired a cellphone 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 on private circumstances, you may 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 robotically rejecting you.
• Enterprise playing cards usually do not depend. Although you record your Social Safety quantity while 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 usually takes your 5/24 depend into consideration while you’re making use of for certainly one of its enterprise playing cards.

Associated: Wish to open a brand new Chase card? Here is the way to calculate your 5/24 standing

Welcome bonuses

Chase additionally imposes restrictions on incomes welcome bonuses. Normally, you will not have the ability to earn a bonus on a Chase card should you at present maintain that card or earned a welcome bonus on that actual card within the final 24 months.

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

“This product just isn’t out there 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, you need to cancel or downgrade a card earlier than reapplying for it. The 24-month ready interval begins while you obtain the bonus, not while 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 not too long ago modified. You will not be eligible for a Sapphire bonus should you at present maintain one of many Sapphire playing cards. Nevertheless, in case you are not a Sapphire buyer, you might be eligible for a bonus when you have not acquired a welcome supply from a selected Sapphire product. Moreover, should you acquired a Sapphire welcome bonus on a selected card prior to now, should you reapply for that card, you’ll most definitely not be eligible to obtain one other Sapphire welcome bonus on that individual product.
• Southwest Airways playing cards: You can’t earn a Southwest private card bonus should you’ve earned one prior to now 24 months. This is applicable to the non-public Southwest playing cards.
• Eligibility for all Marriott Bonvoy playing cards: Chase and American Categorical have teamed as much as make it tougher to be accepted for Marriott bank cards. Which means 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’ve or have had any of the Amex Bonvoy playing cards additionally components in. For extra info on Marriott Bonvoy bank card eligibility, see this information.

Associated: Finest Chase bank cards

Citi

Variety of playing cards

Citi sometimes does not restrict your total variety of bank cards; as a substitute, it limits your total credit score throughout all Citi playing cards. As soon as you have reached that tipping level, you will probably be given the “software pending” discover while you apply for a brand new card.

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

Citi can be recognized to be extremely delicate to latest inquiries, so after you have used up your 5/24 slots with Chase, you may think about making use of for Citi playing cards.

Quantity and timing of functions

Citi has exact guidelines for the way often you’ll be able to apply for bank cards. There are barely totally 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 pointers 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, here is the language discovered on the Citi Strata Premier® Card (see charges and charges):

“Bonus ThankYou® Factors aren’t out there should you acquired a brand new account bonus for a Citi Premier® or Citi Strata Premier® account prior to now 48 months or should 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, should you opened a Citi Premier Card (not out there 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 usually does not restrict the variety of playing cards you’ll be able to have, however the regular suggestions apply concerning your total credit score profile.

Quantity and timing of functions

We do not have a lot knowledge concerning the variety of functions you’ll be able to have with the financial institution. Nevertheless, you’ll find this assertion on the phrases and situations web page for many Wells Fargo-issued playing cards:

“It’s possible you’ll not qualify for an extra Wells Fargo-branded shopper bank card when you have 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 would be denied a brand new Wells Fargo card when you have 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 not too long ago denied for a Wells Fargo card as a result of she had opened too many new playing cards prior 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 selected rule, only a suggestion for elevating your probabilities of approval.

Associated: Finest 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 helpful perks along with an preliminary bonus.

Sadly, should you misunderstand the nuances of every issuer’s software restrictions, you would 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 would strongly encourage you to pay shut consideration to them as you intend out your subsequent set of functions.

Associated: How to decide on the very best bank card for you