Does Amex have a 2-90 rule?

Decoding the Amex Myth: Is There Really a 2/90 Rule?

American Express (Amex) is known for its prestigious cards and rigorous application processes. A common rumor circulating among credit card enthusiasts is the existence of a “2/90 rule,” limiting applicants to only two new Amex cards within a 90-day period. While the exact wording isn’t explicitly stated in Amex’s public documentation, the underlying principle is undeniably true: Amex actively manages the number of new cards they approve for any given individual within a short timeframe.

The purported “2/90 rule” isn’t a hard and fast rule with a clearly defined penalty for exceeding it. Instead, it’s more accurate to describe it as a de facto policy reflecting Amex’s risk management strategy. They aim to prevent individuals from accumulating excessive credit lines quickly, which could signal increased risk of default. This isn’t unique to Amex; many credit card issuers employ similar, albeit less formally defined, strategies.

So, what happens if you apply for more than two Amex cards within 90 days? It’s not guaranteed your applications will be automatically rejected. However, your chances of approval significantly decrease with each subsequent application. Amex’s sophisticated algorithms consider various factors beyond just the number of recent applications, including:

• Credit Score: A higher credit score significantly improves your chances of approval, regardless of how many cards you’ve recently applied for.
• Credit Utilization: Maintaining a low credit utilization ratio (the amount of credit you’re using compared to your total available credit) demonstrates responsible credit management.
• Income and Employment: A stable income and consistent employment history demonstrate financial stability, increasing approval odds.
• Existing Amex Relationship: Existing cardholders with a positive history of on-time payments are generally viewed more favorably.
• The Specific Cards Applied For: Applying for multiple premium cards simultaneously is riskier than applying for a mix of cards with varying levels of benefits and fees.

Instead of focusing on a rigid “2/90 rule,” it’s wiser to approach Amex applications strategically. Space out your applications, ensuring each application demonstrates a clear need and aligns with your financial goals. Applying for multiple high-limit cards simultaneously is almost certainly going to trigger a red flag. Building a strong credit history and maintaining responsible credit management practices significantly increase your chances of success, regardless of any perceived application limits.

In conclusion, while a formal “2/90 rule” may not exist in black and white, Amex implicitly limits the number of new card approvals within a short time frame. Understanding their risk assessment practices and focusing on building a strong credit profile is the key to successfully navigating the Amex application process. Patience and strategic planning are your best allies.