1. “Once in a Lifetime” Bonus:
- This rule means that if you’ve ever held a specific American Express credit card in the past, you might not qualify for the welcome bonus offered when applying for that card again. This is regardless of whether you received a bonus the first time or not.
- For example, if you previously had an Amex card like the Amex EveryDay® Credit Card and later canceled it, applying for the same card in the future might not make you eligible for the introductory offer.
2. “5 Credit Card Limit”:
- American Express typically imposes a limit on the number of Amex credit cards you can have concurrently, and that limit is generally five credit cards, whether they are personal or business cards.
- If you already have five Amex credit cards and wish to apply for a new one, you would usually need to close one of your existing accounts to make room for the new card.
3. “1 in 5 Rule”:
- The “1 in 5 Rule” means that you can generally apply for and get approved for one American Express credit card every five days. This rule doesn’t usually apply to charge cards.
- This means that if you applied for one Amex credit card today, you’d typically need to wait at least five days before applying for another.
4. “2 in 90 Rule”:
- The “2 in 90 Rule” states that you can be approved for a maximum of two American Express credit cards within a 90-day period. If you attempt to apply for a third credit card within this 90-day window, your application is likely to be automatically rejected.
5. Welcome Offer Clawbacks:
- American Express may “claw back” or retract a welcome bonus if they detect certain activities they consider to be “gaming” the system. These activities can include:
- Making peer-to-peer (P2P) payments, which is when you send money to a friend using services like PayPal.
- Purchasing cash equivalent gift cards, like Visa or Amex gift cards, from retailers.
- Closing newly opened accounts before they have been open for at least 12 months.
6. Welcome Offer Eligibility:
- If you apply for an American Express card and receive a message indicating that you are not eligible for a welcome bonus, it means you will not receive that bonus.
- This message can appear if you’ve engaged in activities outlined in the “Welcome Offer Clawbacks” section or if you haven’t been actively using your existing American Express cards.
7. Optimal Strategy:
- To minimize the impact of credit inquiries on your credit report, it’s often recommended to apply for an American Express charge card and a credit card on the same day. This way, both applications are combined into a single hard inquiry.
8. Welcome Offer Matches:
- American Express generally does not match welcome offers. So, if you apply for a card with a specific bonus, and shortly afterward, a higher bonus becomes available, Amex is unlikely to match the new, higher offer.
9. Checking for Targeted Offers:
- If you’re not already an American Express customer, it’s advisable to wait for targeted offers, which are often more attractive than public offers. CardMatch is a tool that can help you find these targeted promotions.
10. Financial Review:
- If your cumulative credit limit with American Express exceeds $35,000, it may trigger a financial review. During a financial review, your accounts will be temporarily frozen until the review is completed.
These rules and considerations may be subject to change, and it’s crucial to verify the most current information on the American Express website or from reliable sources when applying for their credit cards in 2023. Adhering to these guidelines can help you navigate the complexities of Amex card applications effectively and maximize your benefits.
