Bank Of America Adds New 24 Month Credit Card Rule

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All card issuers have different ways that they deal with people trying to “game” the system. Obviously card issuers want to encourage profitable behavior, so they do what they can to create policies that maximize the odds of that.

There’s no doubt that by adding these restrictions they’re missing out on some potentially profitable customers, though there’s a balance there.

The major restrictions card issuers have

Just to look at some of the basic rules that are generally out there among various issuers:

  • American Express has a “once in a lifetime” rule, where you can typically receive the welcome bonus on each card at most one time
  • Chase has the “5/24 rule,” where you typically won’t be approved for their cards if you’ve opened five or more new card accounts in the past 24 months
  • Citi has a rule whereby they typically won’t approve you for a card if you’ve opened or closed a card in that “family” of cards in the past 24 months
  • Capital One typically won’t approve you for more than one card every six months

Bank of America’s new card restriction

Well, it looks like Bank of America has just implemented a new rule for their credit card applications. Historically Bank of America has been pretty lax when it comes to their rules

Their major rule was known as the 2/3/4 rule, where they would typically only approve you for two cards every two months, three cards every 12 months, and four cards every 24 months.

They’re now adding a further restriction to that. Bank of America has introduced a new 24 month rule on many applications.

For example, the terms for the popular Alaska Airlines Visa Card now say:

This card will not be available to you if you currently have or have had the card in the preceding 24 month period.

This rule doesn’t yet appear on all Bank of America cards. For example, the Alaska Airlines Visa® Business credit card doesn’t have the same language as the personal card.

Meanwhile other cards have different restrictions listed. The Bank of America Travel Rewards Card says the following:

This Travel Rewards card will not be available to you if you currently have a Travel Rewards card unless you have had that Travel Rewards card for at least 24 months.

As you can see, while it also has a 24 month restriction, it says that you can get a second card as long as you’ve had one for at least 24 months.

Bottom line

It’s not surprising to see Bank of America crack down here, given how many Alaska Visa Cards many people had. With Bank of America you’ll want to look at each individual card application, since different cards seem to have different restrictions as of now.

Top Travel Rewards Cards

Will you be impacted by this new Bank of America 24 month rule?

(Tip of the hat to Doctor of Credit)

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Comments

  1. I think from what I hear that this in fact is the beginning of diminished offerings. As a former investment banker/banker it’s about time these programs are not cost effective and adds to the ultimate rate we users pay.

    Remember the old EF Hutton ad “we do it the old fashion way we earn it”

  2. Lucky, the link to your Citi post says that you won´t get a sign up bonus if you have/had a card in the same family in the last 24 months, not that you won´t be approved for them.
    You can´t apply for the Citi Prestige if you got the Citi Premier in the last 24 months or you can apply but won´t receive the sign up bonuses?

  3. ghostrider5408 – which element do you think this is really related to:
    1. Merchant fees going down.
    2. Annual CC fees going down.
    3. Shareholder returns going up.

    Hmm.

  4. @Lucky

    What does it mean you can get a second card from them? Like a second card of the exact same card you already have and get a bonus for the second one?

  5. @RC. Correct, the same person could have multiple AK personal cards. Did it by mistake the first time but when I called to correct the mistake I realized they didn’t care. In addition to an extra sign up bonus the second card gets you an addditional low cost companion fare.

  6. So this is only referring to new card holders right? I’ve had my BoA for 2 years come this June now, and I’ve been given no notice of policy change.

  7. Thank you kindly for sharing this. I can still obtain my Alaskan Airlines Business Visa. I have completely cut ties with Citi after them not awarding the 70K business miles for $4K in purchases in 4 months. I forgot about a “Citi” business card I stopped a long time ago and I can’t find my date of closure. My total was near $5K.

    No one from Citi told me this prior to spending the $4K plus. It was only afterwards that they notified me of the issue. I have been with them for over 25 years religiously using their cards. I was told I should have read the fine print. Who thoroughly digests this information?

    Converting entirely to Barclays, Alaskan Airlines and Chase. I have spent over 1 million dollars with them in the 25 plus years and I considered this a slap in the face! Thanks for your post!
    Mike Hinshaw
    NomadicTexan

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