[Update 5/19/20: The 4 credit card limit has been confirmed by Amex, as well as a 10 charge card limit.]
Over the last 24 hours there have been a number of datapoints of consumers applying for an American Express card and being denied, upon reconsideration they were told that American Express now has a limit of four ‘lending products’ per customer. Previously American Express allowed consumers to have five (or more) credit cards and recently there has been reports of a 10 charge card limit added.
Let’s talk a look at some of the datapoints we’ve seen:
- Approvals:
- Approved for Morgan Stanley plat on 5/14, already had 4 personal, 1 biz and 4 charge cards
- Approved for Morgan Stanley plat on 5/14 with 2 open biz charge, 4 open personal biz charge, 3 open personal credit, 2 open personal biz
- Approved for Charles Schwab with 5 credit cards and six charge cards
- Approved for Bonvoy Brilliant, currently holds Aspire, Surpass, Bonvoy, BCE, as well as 6 charge cards (first time going from 4 to 5)
- Approved for Hilton Surpass, currently holds delta gold, delta business plat, hilton business, hilton aspire
- Â Denials:
At this stage it looks inconclusive at best. The worrying thing is customer service representatives citing a four card limit.
Hat tip to Walter Credit
It’s worse than this…
For at least the last year I have been unable to sign up for any Amex card that bonuses.
After I click apply a box pops up that says, ‘Due to your history, we are unable to offer you a welcome bonus, you can still apply for the card if you wish to continue’
For the record I am down to two Amex cards, Hilton and Delta. Sine 2007 I have had a TOTAL of 5 Amex personal cards including these two. Two of those 5 were the Costco & SPG cards that no longer exist. I held the costco card for 10+ years…
I have had the Amex Gold & Delta Business cards as well.
This hardly seems like an account history they should be banning someone for, but fair warning to everyone else.
Definitely not the case. Over the weekend I applied and got approved for the Platinum card & I have a total of 18 AMX card products
True, had to close 2 to get Magnet approved
My DP: Was just instant approved for Amex Gold Monday and currently hold 2 charge cards and 5 credit (Platinum, BCE, Delta Plat, Delta Blue, Bonvoy Brilliant, Bonvoy Biz, Corporate).
Just wanted to add a DP, not for the 4/5 card rule, but Amex tightening up in general. 2 days ago, I first tried applying for the Hilton Business card, pop-up came up. So instead, I applied for the Hilton Aspire, no pop-up. However, for the first time ever, I was given a pending decision instead of an instant approval. 2 days later (today) I was sent an email that I was approved. No hard pull as usual. Glad it worked out, but I am surprised I was not instantly approved yet there wasn’t a hard pull either. As soon as I get the SUB on this, I’m planning on getting a Marriott Business Amex. Will see then if my new limit is 4 or 5.
I have 4 Amex business cards, 2 Amex personal cards and 2 USAA co-branded Amex personal cards. I was denied before coronavirus went down for the business blue cash. I can only imagine now that I have to close five of them before I could even downgrade sounds like it’s getting really bad out there
USAA cards aren’t counted in this. But yes, unless 2-3 of your cards are charge cards (Gold, Plat, Green, etc.) you’ll have to close before getting something new.
Do you have to wait 12 months to PC (upgrade) Biz cards or does the 12 month rule only apply to Personal cards?
TIA. – wondering about upgrade Green biz to biz Plat .
What is the 12 month rule are you referring to?
On at least a personal card, you can’t make certain changes to the card, such an upgrade, within the first 12 months after acquiring it, per a US Consumer Protection rule, at least as the banks interpret that rule.
See here for more:
https://www.doctorofcredit.com/upgrading-credit-cards-rules-tips-for-each-card-issuer/
The CARD act of 2009 (I couldn’t remember the law’s name to Google when I asked last night). It was a law passed during the “great recession”.
For personal cards it prevents being charged higher fees for a new card for 12 months and required a written notice, thus no PC from a basic card to Premium card or penalty fees retroactivity rasing or increase AF.
The CARD act also covers GC, debit cards and provides consumers a lot more protection. It’s why Biz cards have higher CL – because they can be profitable.for issuers, if a consumer misses a payment, or doesn’t pay balance in full.
FWIW – DW was denied 5th CC Aspire – they even HP her a first in ages.
DP#2. DW did PC Green Biz to Biz Plat – successful under 12 months.
They prorated the AF but thankfully the green card had Dell 10% offer and other Dell offers available. The Green was FYF with a few months before 1st renewal.
DP: Had 2 Amex personal charge cards (Plat and Gold), 3 Amex personal credit cards, and the Amex Business Plat. Applied for the Schwab Plat on 5/14 morning and got instantly approved.
4 cards, BBP, BBC, Blue Cash, Amzon.com.
IA Hilton card on the 12th (11 PM Pacific)
This change must be at most 48h
nope got denied on the 7th havent called yet but now i suspect this the reason
You should get a denial letter at some point giving you the original denial reason. (It may be too late to call since they may give a new reason instead of the original reason if you call now.) Please come back and tell us what that denial letter says. Thanks.
Just tried to apply for the no annual fee Hilton Honor card with 100k bonus. Got declined.
I am currently holding: 4 credit cards: Hilton Aspire, Hilton Surpass, Delta Gold, Bonvoy Brilliant. 3 charge card: 2 plat, 1 green.
I closed one credit card (Delta Platinum) about 20 days ago, so not sure whether the denial is because of the 5 cards limit, or because of the “new” 4-card limit
You’re misunderstanding what this limit is about. A person with LESS THAN 4 credit cards but also some charge cards got denied, and was told they’d have to close two cards to get approved for the new one, and that math showed that their current TOTAL cards minus the cards Amex said they’ve to close plus the new card was 4 TOTAL (credit + charge).
So this new 4-card limit may not be on credit cards alone, but on total cards. You can only find out by calling and them telling you how many cards you’d have to close to able to apply for the new one. If they tell you that you have to close 4 cards, then that’s the new 4-charge-plus-credit-card limit (7 current – 4 closed + 1 new = 4 total).
The most useful datapoints are the ones that involve calling Amex after denial, because only then do you find out exactly how many cards they say you would need close to be able to be approved for the new card.