Guide to Understanding the General Rules and Limitations for Applying for a Credit Card in 2024
Introduction to credit card applications
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Most banks and credit card issuers have specific policies that determine whether or not you qualify for a new card, and it's a good idea to be aware of them. Otherwise, you may not be approved or, approved but not eligible for sign-up bonuses in the form of points, miles, or cash back.
In this article, we will discuss some of the policies implemented by several major credit card issuers.
The importance of knowing the rules and boundaries
One important note: Only some of these are "official" policies mentioned in the respective credit card terms and conditions. Other rules are not officially published by the publisher but have been well documented by the applicant's data. For example, even Chase's 5/24 rule, one of the app's most notorious restrictions, isn't actually documented anywhere on Chase's website.
General rules for applying for a credit card
There are many reasons why you may not be approved for a credit card. Here are some basic criteria you'll need to meet, as well as some reasonable reasons you might be denied a credit card.
Age and income requirements
Most credit card companies will not issue credit cards to individuals under 18 years of age, although some issuers allow parents or legal guardians to add children as authorized users of a credit card.
You'll also have to meet certain income requirements for card approval, especially if you're applying for the best credit cards with hundreds of dollars in benefits. Although there are no hard and fast rules, issuers tend to prefer applicants in the higher salary range.
Consider credit scores and history
Understandably, issuers also prefer applicants with good to very good credit scores. If your credit is low or thin, applying for a secured credit card can help you improve your credit score and history so you can eventually "graduate" to an unsecured card. Having a strong credit score and history can help you qualify for the best travel rewards credit cards and small business credit cards.
Publisher-specific restrictions
Each issuer has its own rules, limits and regulations. Here's what you should know, based on cardholder insights on popular forums like Reddit, as well as hearsay and information from financial sources.
Bank of America
Bank of America has a 2/3/4 rule, which states that you will only be approved for:
Two new cards in a rolling 30 day period
Three new cards in the current 12 month period
Four new cards in the current 24 month period
So, if you want multiple cards from Bank of America, you'll want to space your applications accordingly.
Additionally, many of the best Bank of America credit cards have language similar to the following, from the Alaska Airlines Visa Signature® credit card terms and conditions: "This card may not be available to you if you currently have or have had a card within the 24th period previous month."
Barclay
Barclays has no published criteria regarding applications. Many Barclays have language like this excerpt found in their JetBlue Plus Card terms and conditions:
"You may not qualify for this offer if you currently or previously had an account with us in this program."
Barclays is known to be quite conservative in approving new applicants. The more other credit cards you have, at Barclays or at any bank, the more difficult it usually is to get approved.
Pursue the 24/5 rule
Chase is famous for its 5/24 rule, which states that you will not be approved for a Chase card if you have been approved for five or more cards from any bank over the past 24 months.
Chase also limits applicants to two new personal cards and one new business card in a 30-day rolling period. These issuers also often limit the total amount of credit they are willing to give you. So, if you have a lot of different Chase cards, you may initially be denied because of this policy. If desired, you can then call Chase's reconsideration line (1-888-270-2127 for personal cards) and request to lower your credit limit on another card to allow enough limit for your new card application.
Chase also limits how often you can get the welcome offer on its various cards, and it usually does so by card family. The limits of this welcome offer are 24 months for most Chase credit cards, and 48 months for the Sapphire family of cards. This date is measured based on the time since you received the card bonus, not from the application date.
Most cards will include this in their terms and conditions when you apply. Here's what the Chase Sapphire Preferred® Card looks like:
"This product is not available to (i) current card members of any Sapphire credit card, or (ii) previous card members of any Sapphire credit card who received a new card member bonus within the last 48 months."
American Express' once-in-a-lifetime rule
With American Express, the most important app policy to be aware of is that you will only get one welcome offer per card in your lifetime. This rule is clearly stated in the terms and conditions when you apply for many Amex cards: "The welcome offer is not available to applicants who have or have had this card."
Different card types are counted separately — so if you get a welcome offer on The Platinum Card® from American Express, you can still receive a welcome offer on another variation of the American Express Platinum Card, such as The Business Platinum Card® from American Express.
Another thing to keep in mind is that American Express also has a limit on the total number of Amex cards you can open at any time. The limit has historically been five cards, but there are reports that it may now be four cards.
You will also not be approved for more than one American Express card in a five-day period, and no more than two cards in a 90-day period.
Capital One
Capital One allows each consumer to have only two open personal credit cards, and applications for additional cards will be denied. The publisher also limits applicants to one application, personal or business, every six months.
Capital One draws from all three credit bureaus when you apply for one of its cards. So keep this in mind when applying for a card with Capital One, especially if you keep an eye on your credit report numbers to make sure your credit score doesn't drop too much in the short term.
Time limits for submitting Citi applications
Citi has different rules regarding when to apply for a card, depending on whether you want a personal or business credit card.
For personal Citi cards, you can apply for one card every eight days and two cards every 65 days. For business cards, you can apply for one card every 95 days.
Additionally, you are not eligible for the new welcome bonus if you have received a bonus or closed a Citi branded credit card such as the Citi Prestige® Card or Citi Strata Premier℠ Card in the last 24 months.
Here's the language from the home page of the Citi Premier application page: "Bonus ThankYou® Points are not available if you received a new cardmember bonus for Citi Rewards+SM, Citi ThankYou® Preferred, Citi ThankYou® Premier/Citi Premier® Card or Citi Prestige®, or if you have closed any of these accounts, within the last 24 months."
The limits for American Airlines co-branded credit cards issued by Citi are slightly different: You can receive a new bonus every 48 months for each card type:
"American Airlines AAdvantage® bonus miles are not available if you have received a new account bonus for a CitiBusiness® / AAdvantage® Platinum Select® World Elite Mastercard® account within the last 48 months."
This information is usually displayed clearly on the application page, so you know what to expect.
Find
You are limited to two Discover credit cards open at any time. Additionally, your first card must be open for at least a year before you are approved for a second card. Additionally, Discover has no other restrictions on being approved for or accepting card welcome offers.
US Bank
US Bank does not publish rules regarding new credit card applications for most of its cards. The only rules that apply to U.S. Cards The Altitude® Reserve Visa Infinite® states that you need an established banking relationship with the U.S. The bank can approve the card.
Fargo Wells
Wells Fargo does not limit the total number of credit cards you can have. However, they limit how often you can be approved for a new credit card. Most Wells Fargo cards contain fine print that aligns with the following terms of the Wells Fargo Propel American Express® card:
"You may not be eligible for an additional Wells Fargo credit card if you have opened a Wells Fargo credit card in the last six months."
Additionally, Wells Fargo limits how often you can get a welcome offer on a new card. Again referring to the Wells Fargo Propel American Express® card terms and conditions:
"You may not qualify for the introductory annual percentage rate, fee, and/or bonus rewards offer if you opened a Wells Fargo credit card within the past 15 months from the date of this application and you received an introductory APR, fee, and/or bonus rewards offer — even if the account is closed and has a balance of $0."
Smart strategy for applying for a credit card
If you want one of the many cards offered by the above issuers, there are some best practices to keep in mind, starting with improving your credit score, history, and income as much as you can. Building a strong credit profile makes you an attractive candidate for any credit card, which can result in larger credit limits, welcome bonus offers, and application opportunities.
There are many strategies for submitting applications taking into account various publisher restrictions. The timing of your application also makes a big difference. Some issuers set limits based on your use of their cards; others take a broader look at your overall credit card history and usage.
Many people plan to get a Chase credit card first because the 24/5 rule tracks all products across issuers. In most cases, Chase doesn't count business credit cards toward your total 5/24 count, so some applicants target business cards before consumer cards. However, your personal credit history will usually be evaluated as part of the business card approval process, so you need a strong profile no matter what.
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