Does AmEx have a 5/24 rule? No; in fact, the AmEx welcome bonus rules work differently than Chase.
Typically, business cards approvals do not count toward your Chase 5/24 score. This is because business cards are associated with a business rather than with the individual applying for the card. This applies to cards from AmEx, Bank of America, BBVA, Citi, U.S. Bank and Wells Fargo.
Card Limits
American Express limits customers to have a total of 5 Amex credit cards open at any one time. This includes both personal credit cards and business credit cards but does not apply to their charge cards.
Amex five-card rule
American Express limits all customers to five personal and business credit cards at a time. The five-card rule does not apply to charge cards, which provides some flexibility if you need more than five Amex cards.
If you have a Consumer or Business Green, Gold or Platinum Card, your Card does not have a credit limit. Instead, your Card has no preset spending limit unless you have been previously notified otherwise. No preset spending limit means the spending limit is flexible.
You'll keep incurring more credit card interest and late fees. Interest charges will continue accumulating as long as you don't pay your card balance. Also, the card issuer could charge you the initial late fee of up to $30, then additional late fees of up to $41 every subsequent time you miss your payment due date.
Interest charges accrue when you don't pay the bill off in full. Pay Over Time charges an interest rate that is the same across the Green, Gold and Platinum products. As of August 2020, cardholders who use the feature will pay an APR between 15.99% to 22.99%, depending on creditworthiness.
The different fees often make or break a deal for a merchant. This is why many merchants, especially small businesses, don't accept American Express. American Express' interchange fee is just too high. Providers like Visa and Mastercard charge between 1.15% and 2.5%, while Amex charges merchants between 1.43% and 3.3%.
2/3/4 Rule
Here's how the rule works: You can be approved for up to two new credit cards every rolling two-month period. You can be approved for up to three new credit cards every rolling 12-month period. You can be approved for up to four new credit cards every rolling 24-month period.
You can have as many Amex credit cards as you like, provided that you meet the issuer's eligibility requirements and get approved. There used to be a limit of 4 cards per cardholder. But according to customer service, this limit no longer applies.
Inactivity is one of the most common reasons for credit card companies to lower credit limits. They may also cut limits to lower their risk with specific customers.
You can request to increase, decrease or transfer your credit limit for your Credit Card on your Online Account, alternatively contact us and a Customer Care Professional will assist you.
You must pay in full, by the Payment Due Date, all charges that are not added to a Pay Over Time, Cash Advance, or Plan balance. We will begin charging interest on cash advances on the transaction date.
Additionally any personal credit card from any other bank will count toward your Chase 5/24 count. This includes most store cards, too. If it's a Visa, MasterCard, American Express, etc., it will count against the Chase rule. If it can only be used inside the store, the card won't count against you.
In general, most business card approvals do not count toward your 5/24 total. That includes business cards from American Express, Chase, Citi, Bank of America, and more. The reason? Business credit card accounts typically don't show on your personal credit report.
No pre-set limits
There are no pre-set spending limits on the American Express® Charge Card. You can spend as much as you've shown us you can afford. Your spending limit is based on factors including your current spending patterns, payment history, credit record and financial resources.
Individuals with a classic FICO score above 795 use an average 7% of their available credit. As your revolving debt climbs, your credit score will begin dropping — long before it reaches the recommended utilization limit of 30% of your available credit.
The Chase 5/24 rule is an unofficial policy that applies to Chase credit card applications. Simply put, if you've opened five or more new credit card accounts with any bank in the past 24 months, you will not likely be approved for a new Chase card.
The golden rule of responsible credit card use is to pay off balances in full and on time to avoid paying interest on revolving balances. If you are unable to pay your statement balances in full, then pay as much as you can; experts caution not to only pay the minimum payment that's due.
American Express is special because it is a luxury credit card brand, known for offering elite rewards and having exclusive approval requirements. American Express also is among the country's largest credit card issuers by purchase volume, and it is one of the four major payment networks.
American Express is one of the leading card issuers in the United States. It's known for its top-notch customer service and some of the best rewards available. From ultra-elite business travel cards to everyday rewards, American Express has credit cards that are a good choice for many different types of cardholders.
Disadvantages of AmEx cards
Since they do not rely on financial companies, such as Rupay, Mastercard or Visa, and have their own payment network, they charge additional fees on the transactions. This is one of the primary reasons, small businesses generally do not accept these cards.
There may be benefits to paying your card bill early. For example, some individuals pay off a portion or all of their balance early, before the monthly due date, as this helps lower their credit utilization rate.
If you accidentally pay less than the minimum required payment or you miss your American Express credit card due date entirely, you can always ask customer service to waive the late fee by calling (800) 528-4800.
If you make an overpayment, the card company will apply the negative balance toward your next statement, but you can also request a refund.