The Basics: An Introduction To Credit Card Application Rules

Does a credit score over 800 grant automatic approval on a credit card application? Unfortunately, and frustratingly, the answer is no. While your credit score is one of the most important factors on a credit card application, a bank considers many other factors as well before approval. Increasing the level of confusion, is how each bank has a unique set of rules. No two banks have the same set of requirements. With that in mind, here is a summary of the key rules for the most valuable travel rewards credit card issuers. 

AMEX

Number of Credit Cards:

AMEX permits you to have up to 5 credit cards and 10 charge cards at any moment in time. A credit card has a set spend limit and allows a balance rollover (i.e. AMEX Hilton Surpass or AMEX Delta SkyMiles Gold). A charge card has no set spend limit and the balance is due at the end of each month (i.e. AMEX Gold or AMEX Green).

Applications:

AMEX limits your number of potential new applications and approvals to 2 credit cards per 90 days.

Welcome / Sign Up Bonus:

The majority of AMEX welcome bonus offers contain “lifetime language.” This limits the welcome bonus to once in a lifetime per card; personal and business versions of the same card (i.e. AMEX Platinum and AMEX Business Platinum) count separately. However, some special offers do not contain the lifetime language. In addition, as both Chase and AMEX offer Marriott co-branded credit cards, welcome bonus eligibility extends across both financial institutions.

Other Information:

On new applications, AMEX flags if you are not eligible for a welcome offer bonus. While most new applications require a “hard inquiry” on your credit report, AMEX can approve a credit card based on your “existing relationship” and avoid the “hard inquiry.”

Reconsideration Line:

+1 (800) 567 1083

Barclays

Number of Credit Cards:

There is no limit on the total number of Barclays personal or business credit cards.

Applications:

There are no known application rules for Barclays. 

Welcome / Sign Up Bonus:

Earning a welcome bonus multiple times per credit card is possible. However, there is a 24 month eligibility waiting period between bonuses. In addition, some credit cards contain ambiguous language in regards to the lifetime nature of the welcome bonus.

Other Information:

Barclays reviews prior spending across your previous or current Barclays credit cards. No spend or inconsistent spend is a red flag. Similar to the infamous Chase “5/24” rule (details below), Barclays loosely utilizes a “6/24” rule.

Reconsideration Line:

+1 (866) 408 4064

Capital One

Number of Credit Cards:

Capital One limits you to 2 personal credit cards. However, this does not include co-branded (i.e Capital One Walmart Rewards) or business (i.e Capital One Spark Miles) credit cards.

Applications:

Capital One limits the number of new applications to 1 credit card per 6 months; across both personal and business credit cards.

Welcome / Sign Up Bonus:

Earning a welcome bonus multiple times per credit card is possible. However, some credit cards contain ambiguous language in regards to the lifetime nature of the welcome bonus.

Other Information:

Capital One is extremely sensitive to recent credit inquiries.

Reconsideration Line:

+1 (800) 625 7866 (normal application services line)

Chase

Number of Credit Cards:

There is no limit on the total number of Chase personal or business credit cards.

Applications:

Chase limits the number of new applications to 2 credit cards per 90 days; across both personal and business credit cards. In addition, Chase utilizes a “5/24” rule on credit applications (see details below).

Welcome / Sign Up Bonus:

Earning a welcome bonus multiple times per credit card with Chase is possible. However, the eligibility period differs across the Chase portfolio. The default welcome bonus eligibility waiting period is 24 months. That period extends to 48 months for the Sapphire family of products. Finally, as both Chase and AMEX offer Marriott co-branded credit cards, the 24 month limit applies across both financial institutions.

Other Information:

While there is no limit on the number of Chase credit cards, there is a limit on the total amount of credit for a given individual. However, with a call to the reconsideration line, shifting credit from an existing credit card is possible.

Reconsideration Line:

+1 (888) 245 0625

What Is The Chase “5/24” Rule

The rule itself is simple. If you open more than 5 credit cards, with any issuer (i.e. AMEX, Citi, etc.), over a 24 month period, Chase automatically denies your credit card application. Two notable exceptions to the rule exist. The first exception is a business credit card. In general, a business credit card does not count towards your “5/24” status. However, Capital One, Discover, and TD Bank business credit cards count against your “5/24” status. Check your “5/24” status on Credit Karma. The second exception is an authorized user credit card. In this case, call the reconsideration line and explain the situation. 

Citi

Number of Credit Cards:

There is no limit on the total number of Citi personal or business credit cards.

Applications:

There is a limit of 1 credit card application per 8 days and 2 credit card applications per 65 days. For business credit cards, the application limit is 1 card per 90 days.

Welcome / Sign Up Bonus:

Earning a welcome bonus multiple times per credit card with Citi is possible. However, two caveats exist. There is a 24 or 48 month eligibility waiting period between bonuses. The 24 or 48 month timer begins at either the point of bonus receipt or credit card closure. In addition, Citi limits welcome bonuses on the basis of product family (i.e. ThankYou Rewards or AAdvantage). Eligibility for a ThankYou Rewards welcome bonus is once per 24 months and AAdvantage is once per 48 months. The AAdvantage CitiBusiness credit card is an exception to the 48 month limit.

Other Information:

While there is no limit on the number of Citi credit cards, there is a limit on the total amount of credit for a given individual. However, with a call to the reconsideration line, shifting credit from an existing credit card is possible. In addition, Citi is extremely sensitive to the number of recent credit inquiries when considering an application.

Reconsideration Line:

+1 (800) 695 5171

Final Thoughts

Nothing is worse in the world of travel rewards than a credit card application rejection. The application is a hit against your credit score, but without the benefits of a new card to earn valuable points and miles. A good understanding of the rules for each bank significantly increases your chances of a credit card application approval. The biggest mistake individuals new to travel rewards make, is not fully understanding the short and long term implications of the Chase “5/24” rule. If you are new to travel reward credit cards, start with Chase, then move to other banks. Due to the stringent requirements, only apply for a Capital One credit card as a last resort. Furthermore, space out credit card applications 3 – 6 months. If you ever find yourself above “5/24,” business credit cards are a fantastic option to earn points without digging a deeper “5/24” hole.