Does Amex have a 5/24 rule?

Amex and the Myth of 5/24: Understanding Amex’s Application Approach

The “5/24 rule” is a well-known hurdle for those seeking to build their credit card portfolios. This unwritten rule, enforced by Chase, limits applicants who have opened five or more new credit cards in the past 24 months. But what about American Express? Does Amex have a similar restriction? The short answer is no, not in the same way. While Amex doesn’t explicitly adhere to a numerical limit like 5/24, they employ a different, less transparent, yet equally impactful method of controlling welcome offer eligibility.

Instead of counting the number of new accounts opened, Amex focuses on individual card product welcome bonuses. The critical factor is the lifetime eligibility for a particular Amex card’s welcome offer. This means that once you’ve received a welcome bonus for a specific card, such as the Platinum Card® from American Express, you’re generally ineligible for that same welcome bonus again, regardless of how many other cards you’ve opened.

This system, while less rigidly defined than 5/24, presents its own challenges. It’s less about the sheer number of cards and more about strategic application timing and awareness of past welcome offer receipt. You could theoretically open numerous Amex cards, but if you’ve already claimed the welcome bonus on a particular card, applying again will likely prove unsuccessful. Amex’s system relies heavily on internal data tracking your application and credit history, making it difficult to predict with complete certainty the outcome of any given application.

Unlike Chase’s 5/24 rule, which is somewhat easier to track and strategize around, Amex’s approach is less predictable. There’s no readily available public tool to monitor your “Amex welcome offer eligibility score”. This lack of transparency makes planning more complex and requires a more cautious approach to applications. It’s advisable to carefully consider your need for each card and the value proposition of its welcome offer before applying.

In conclusion, while Amex doesn’t have a direct equivalent to the 5/24 rule, it maintains a rigorous system for managing welcome offers. Instead of a numerical limit, Amex focuses on preventing users from repeatedly claiming welcome bonuses on the same card. Understanding this approach is crucial for maximizing rewards and avoiding application rejections. Thorough research and careful planning are essential when building your Amex card portfolio.