All the main bank card issuers have completely different guidelines on the subject of making use of for his or her playing cards. Moreover, these guidelines are always altering, as banks attempt to optimize their technique as to what sort of card members they’re searching for.
With issuers developing with increasingly guidelines these days for being authorized for playing cards, I wished to offer an up to date rundown of the principles from every of the foremost card issuers. On this submit, I’ll talk about the fundamentals you have to be conscious of if you wish to be authorized for a card by American Categorical, Chase, Citi, Capital One, Financial institution of America, and Barclays.
Hold a wonderful credit score rating & use playing cards responsibly
Earlier than I get too deep into the principles, there are a few issues I wish to point out upfront.
To begin with, that is supposed for individuals with glorious credit score. Bank cards could be extraordinarily rewarding, and making use of for plenty of bank cards may even assist your credit score. Ensure you do what you may to maintain your credit score rating excessive, which shouldn’t be too robust when maintaining to finest practices.
Second of all, you need to solely join bank cards if you should utilize them responsibly. This implies paying off your steadiness in full each billing cycle, and never rising your spending massively simply since you’re not paying money. Having the best bank cards might help you maximize rewards vastly, although the worth of these rewards will shortly be offset if you happen to’re paying 20%+ curiosity financing costs. So don’t do this.
Lastly, these guidelines are always altering, and I’m additionally generalizing right here, so be sure you all the time examine the phrases on the appliance web page of the cardboard you’re contemplating getting.
With that out of the way in which, let’s get into it.
American Categorical utility guidelines
In my expertise, American Categorical playing cards are among the many best to be authorized for assuming you may have good credit score. There are additionally plenty of profitable playing cards incomes Amex Membership Rewards factors, which is the icing on the cake.
When you’re new to bank cards, I all the time advocate beginning with Amex, as a result of it’s the issuer that’s typically essentially the most beneficiant on the subject of immediate approvals, and having these playing cards might help you additional construct your credit score historical past over time. In some methods Amex has strict guidelines for getting authorized, whereas in different instances it doesn’t, so under are the principles to pay attention to.
As soon as in a lifetime rule
The welcome affords on nearly all American Categorical playing cards are “as soon as in a lifetime.” Which means you may get the bonus on nearly each card as soon as, however you may’t get it once more sooner or later. Even if you happen to shut a card, you received’t be eligible for the bonus on that card once more sooner or later.
Notice that this rule is predicated on whether or not you’ve had a card earlier than, and never whether or not you’ve acquired a bonus on it. So if you happen to had a card previously however didn’t obtain a bonus, you continue to wouldn’t be eligible for the bonus.
The excellent news is that the definition of “lifetime” won’t be fairly as strict because it sounds. Many report that seven years after canceling a card you’re eligible once more, although that’s anecdotal relatively than a printed rule. Moreover, generally there are focused affords that don’t embrace this “as soon as in a lifetime” restrictions.
5 bank card restrict
American Categorical limits individuals to having 5 Amex bank cards at any given time. Notice that this card restrict don’t embrace playing cards and not using a fastened spending restrict (typically thought-about to be “hybrid” playing cards), like the next:
Two bank cards each 90 days
You received’t be authorized for greater than two Amex bank cards in a 90 day interval. This restrict excludes playing cards and not using a fastened spending restrict, that are counted individually.
So far as two playing cards inside 90 days goes, it’s typically okay to use for 2 bank cards the identical day — simply anticipate that one utility could also be delayed a number of days earlier than it’s authorized, and that’s high quality.
Eligibility examine
Amex denies bonuses to sure individuals based mostly on their historical past with Amex, past the above guidelines. If this is applicable to you, it’s possible you’ll obtain a pop-up through the utility course of that reads as follows:
Based mostly in your historical past with American Categorical welcome affords, introductory APR affords, or the variety of playing cards you may have opened and closed, you aren’t eligible to obtain this welcome provide.
Now we have not but carried out a credit score examine. Would you continue to wish to proceed?
Capital One utility guidelines
These days there are some phenomenal Capital One playing cards for incomes journey rewards. There are a number of playing cards incomes Capital One miles, in all probability the preferred of which is the Capital One Enterprise X Rewards Credit score Card (overview). That’s a card that lots of people are making use of for these days, so we’ve a number of information factors about Capital One’s utility restrictions.
Let’s take a look at what you must learn about purposes with Capital One.
The 48-month rule
Private Capital One playing cards have a 48-month rule, whereby current or earlier cardmembers of a selected card aren’t eligible for a product if they’ve acquired a brand new cardmember bonus for that precise product previously 48 months.
Notice that this solely applies to that precise card, so that you’re nonetheless eligible for the bonuses on completely different playing cards. This rule additionally isn’t printed for enterprise playing cards.
Inconsistent guidelines
Past the 48-month rule, there aren’t any constant utility guidelines I’ve been in a position to determine with Capital One. Now, there are some rumored insurance policies, however I’ve sufficient information factors that counter these alleged guidelines that make me really feel like they’re not cut-and-dry. Particularly:
- There’s a rumor that Capital One will approve you for at most one card each six months, and that features private and enterprise playing cards; nevertheless, I’ve acquired many information factors of individuals getting a number of playing cards inside that interval
- There’s a rumor that Capital One will solely let you may have two private bank cards at a time, excluding co-brand playing cards; nevertheless, there are a number of information factors of individuals having greater than two private Capital One playing cards
So it’s price being conscious of the assumption amongst some that these restrictions exist, however at a minimal it doesn’t appear to be they’re constantly enforced.
Pull from all three credit score bureaus
To me this isn’t a giant problem and in addition doesn’t essentially affect your odds of approval, however Capital One does typically pull credit score from all three credit score bureaus while you apply for a card. In case your credit score rating is sweet, this shouldn’t actually matter, although I do know that is one thing that some individuals are involved about.
Chase utility guidelines
Chase largely has essentially the most profitable rewards bank cards, although Chase playing cards are additionally typically the hardest to be authorized for. If you wish to be authorized for a Chase card, there are a number of restrictions to pay attention to.
The 5/24 rule
Chase has what’s often known as the 5/24 rule, the place you usually received’t be authorized for a Chase card if you happen to’ve opened 5 or extra new card accounts previously 24 months. Do word that almost all enterprise card purposes received’t rely towards that restrict, although.
Notice that these days the 5/24 rule now not appears to be constantly enforced, as there are many information factors contradicting it. So it’s one thing to pay attention to, however don’t essentially assume it can apply to you.
Two playing cards each 30 days
Chase will usually approve you for at most two private playing cards in a 30 day interval, and at most one enterprise card in a 30 day interval. As I mentioned above, Chase is in some ways one of many hardest issuers, so don’t essentially anticipate you’ll be authorized for 2 playing cards in 30 days, although you may be.
No restrict on what number of playing cards you may have
Chase doesn’t appear to have a strict restrict on what number of whole playing cards you may have from the issuer. Reasonably Chase’s restriction appears to be based mostly on how a lot whole credit score the issuer is keen to increase you. Typically Chase will allow you to change round credit score strains on playing cards to have the ability to open a brand new card, in a scenario the place the corporate has prolonged you the utmost quantity of credit score.
The 24 & 48-month rule
Chase welcome bonuses principally aren’t as soon as in a lifetime, however relatively are based mostly on a 24 or 48-month cycle.
The most typical rule on playing cards is that you just’re not eligible for the welcome bonus on a card if you happen to presently have that card, or if you happen to’re a earlier cardmember who acquired a bonus on the cardboard previously 24 months. For instance, that is the rule on the Chase Freedom FlexSM (overview) and Chase Freedom Limitless® (overview).
For some playing cards, this restrict is 48 months, although. For instance, on the Chase Sapphire Most popular® Card (overview) the identical guidelines apply, besides it’s based mostly on having acquired a bonus on the cardboard previously 48 months.
Household card guidelines
For many Chase playing cards, eligibility for a welcome bonus is predicated on whether or not you’ve had that particular card earlier than. Nevertheless, for purposes of Sapphire, Marriott, and Southwest playing cards, additional “household” guidelines could apply.
For instance, with the Chase Sapphire Most popular® Card and Chase Sapphire Reserve® (overview) you’re not eligible for the bonus if you happen to presently have both of the Sapphire playing cards or if you happen to’ve acquired the brand new cardmember bonus on both of the Sapphire playing cards previously 48 months.
Equally, there are three private Southwest Airways bank cards, although you’re solely eligible for the bonus on a selected card if you happen to don’t presently have any card in that “household,” or haven’t acquired a brand new cardmember bonus on any card within the household previously 24 months. In different phrases, you’re not eligible for the bonus on the Southwest Speedy Rewards® Plus Credit score Card (overview) when you have the Southwest Speedy Rewards® Precedence Card (overview).
Citi utility guidelines
Citi is someplace between American Categorical and Chase on the subject of how troublesome it’s to be authorized for playing cards. I believe the easiest way to explain Citi is that the issuer could be quirky on the subject of approvals. There are many nice Citi playing cards, together with playing cards incomes Citi ThankYou factors. Let’s check out the Citi utility guidelines you have to be conscious of.
One card each eight days, two playing cards each 65 days
Citi will approve you for at most one card each eight days, and at most two playing cards each 65 days. It is a rolling restrict.
The 48-month rule
Very similar to with Chase, welcome bonuses aren’t as soon as in a lifetime, however relatively there’s a required ready interval. With Citi’s 48-month rule, you’re not eligible for the bonus on a card if you happen to’ve acquired a bonus on that particular card previously 48 months.
The excellent news is that eligibility for every card is taken into account independently. Moreover, while you shut a selected card doesn’t issue into whether or not you’re eligible for a bonus or not, however relatively simply if you happen to’ve acquired a welcome bonus on a selected card in that timeframe.
These days this is applicable to a overwhelming majority of Citi playing cards, starting from co-branded merchandise just like the Citi® / AAdvantage® Govt World Elite Mastercard® (overview), to Citi merchandise just like the Citi Strata Premier℠ Card (overview).
Financial institution Of America utility guidelines
Financial institution of America has a number of bank cards which can be fascinating to these seeking to maximize rewards, together with the Alaska Airways Visa Signature® bank card (overview) and Alaska Airways Visa® Enterprise card (overview). Beneath are the Financial institution of America utility guidelines to pay attention to.
2/3/4 rule
With the two/3/4 rule, you may usually solely be authorized for at most two Financial institution of America bank cards in a rolling two month interval, three bank cards in a rolling 12 month interval, and 4 bank cards in a rolling 24 month interval.
3/12 rule
Anecdotally you typically received’t be authorized for Financial institution of America playing cards (enterprise or private) if you happen to’ve opened three or extra new bank cards with all issuers previously 12 months (very similar to with the Chase 5/24 rule, most enterprise playing cards don’t appear to rely towards that restrict).
The exception is when you have a deposit account with Financial institution of America, through which case the rule appears to as an alternative be that you would be able to’t be authorized if you happen to’ve opened seven or extra playing cards in that interval.
Notice that this doesn’t appear to be enforced 100% of the time, and there appears to be some flexibility. Nevertheless, we at the moment are steadily seeing individuals denied for playing cards with as few as three inquiries previously 24 months.
24-month rule
Many Financial institution of America bank cards have a 24-month rule, the place you may’t get a card if you happen to’ve had that card previously 24 months. Anecdotally that doesn’t apply to many enterprise playing cards, together with the Alaska Enterprise Visa.
Barclays
Barclays has a restricted variety of co-branded journey bank cards, together with some American Airways and JetBlue Airways playing cards. Not like different issuers, Barclays has only a few constant restrictions on approvals.
Inconsistent guidelines
There are some normal Barclays tips price being conscious of, although the catch is that they’re fairly inconsistently utilized. When you’re contemplating a Barclays card:
- Barclays generally applies a 6/24 rule, whereby the issuer received’t approve you for a card if you happen to’ve opened six or extra new playing cards previously 24 months (that is just like Chase’s 5/24 rule)
- When you’re immediately authorized for a number of Barclays playing cards in a day (which could be robust), the onerous inquiries could also be consolidated into one
- Typically talking, you’re eligible for the bonus on a Barclays card if you happen to’ve closed the identical card no less than six months in the past, although there’s a number of inconsistency there
- Barclays could take into account your spending on different Barclays playing cards in deciding whether or not to approve you for a brand new one; in different phrases, if Barclays doesn’t see that you just’re spending in your current card, the issuer could not approve you for an additional card
Backside line
As you may see, there’s an enormous variance when it comes to the principles for getting authorized for bank cards with the foremost card issuers. In all instances, you’ll wish to seek the advice of the phrases listed on the bank card utility for the cardboard you’re contemplating.
Bank card issuers typically replace their insurance policies as nicely, and whereas I’ll attempt to hold this up to date, stuff typically modifications with out us even understanding. If in case you have any experiences to share with bank card approvals please do, because it’s attainable I missed one thing, and information factors are all the time useful.
What has your expertise been with bank card approvals?
