Credit Card Rules: Bank of America Edition
In comparison with credit card providers such as Chase and American Express (AMEX), Bank of America (BoA) might not always present the most compelling offers in the credit card market. However, BoA distinguishes itself with several specialized offerings, particularly its Alaska Airlines personal and business credit cards, which reliably provide significant value. As with credit card applications for AMEX, which has its lifetime language stipulation, or Chase, known for its 5/24 rule, BoA also implements certain guidelines. Although these guidelines are not stringent, adhering to them can be advantageous in ensuring you are maximizing your strategy:
Bank of America operates with both official and unofficial guidelines for credit card applications.
2/3/4 Rule
The 2/3/4 Rule specifies that a cardholder can open two new cards within a two-month period, three new cards within a year, and four new cards over two years. Unlike Chase's 5/24 Rule, which considers credit cards from all issuers, BoA's 2/3/4 Rule is exclusive to credit cards issued by BoA itself. It's important to highlight that this rule is applicable solely to personal credit card applications.
3/12 Rule & 7/12 Rule
The 3/12 Rule expands on the previously mentioned 2/3/4 Rule by stipulating that a cardmember will not be approved for any new personal or business credit card by BoA if they have opened three or more new credit cards in the past 12 months.
Holding a checking account at Bank of America may increase the likelihood of changing a pending credit card application status into an approval. Photo by engin akyurt on Unsplash.
A potential workaround for this rule—or at least a method to gain some leeway—is to maintain a checking account with Bank of America with a balance ranging from $2,500 to $5,000. Establishing a banking relationship with BoA has led some consumers to report success in having their credit card applications approved beyond the typical limit, allowing for up to seven new credit cards within 12 months, thus introducing the 7/12 Rule. This approach might offer BoA more confidence in managing future payments. Therefore, if your application is initially rejected due to exceeding the 3/12 threshold but falls below the 7/12 limit, opening a checking account with BoA and requesting reconsideration could be a beneficial strategy.
24-Month Rule
The 24-Month Rule dictates that individuals may not be eligible for a card if they currently hold or have held the same card within the past 24 months. This rule is particularly important when it comes to qualifying for sign-up bonuses, as it disqualifies applicants from receiving any sign-up bonus if they fall within this timeframe. However, exercising patience and adhering strictly to the guidelines set forth by BoA can enable you to become eligible again for the bonus on the same card. Presently, the 24-Month Rule is applied solely to personal credit cards, but it is anticipated that a similar rule will soon extend to business cards as well.
Currently, the 24-Month Rule is exclusively applied to personal credit cards, but I assume the rule will shortly be implemented for business cards too.
These Rules Are Soft Rules
As indicated at the outset, it's important to recognize that these guidelines are soft rules, meaning approval or denial of credit card applications can still occur regardless of whether your applications fall within or exceed the specified thresholds. These 'rules' have been formulated based on the collective experiences and data points shared by credit card aficionados. However, it's crucial to approach these insights with caution due to potential inaccuracies or misrepresented experiences. For example, one source might claim that the 3/12 and 7/12 Rules only pertain to personal credit cards, while another might report that the 2/3/4 Rule did not apply in their case. This underscores the need for flexibility in interpreting these soft rules. Additionally, these guidelines are subject to change, underscoring the importance of conducting current research prior to applying for a BoA credit card.
If your credit card application is declined or placed under review, I recommend contacting Bank of America’s reconsideration line. Photo by NordWood Themes on Unsplash.
Summary
Similar to other credit card companies, Bank of America operates with both official and unofficial guidelines for credit card applications. The 2/3/4 Rule is a well-recognized guideline that offers a framework for the approval frequency of new cards within specific timeframes. Additionally, the 3/12 Rule can extend the potential to acquire more BoA credit cards by turning it into the 7/12 Rule by fostering a banking relationship with BoA. Meanwhile, the 24-Month Rule, currently applicable only to personal credit cards, restricts how often sign-up bonuses can be received. Aside from the 24-Month Rule, it's essential to grasp that most of these guidelines are derived from the experiences and insights of the points and miles enthusiast community. Consequently, the applicability of these rules to your credit card application can vary, as each individual's credit history is distinct and personal.
