The issuer’s five card limit is a restriction to be mindful of when applying for American Express cards. I wanted to go into more detail about that in this post and also share some data suggesting that maybe this isn’t quite as strict as it used to be.
Navigating the world of rewards credit cards can be a daunting task, especially when it comes to understanding the rules and restrictions of different issuers. One of the most common questions that arises is: how many Amex cards is too many?
This guide will delve into the intricacies of American Express’ card limit, providing you with the knowledge you need to optimize your Amex card strategy We’ll explore the different types of Amex cards, the official limit, and some recent data points that suggest a potential shift in the policy
Understanding the Types of Amex Cards
Before we delve into the card limit, it’s crucial to understand the different types of cards Amex offers. Amex issues two distinct categories:
- Credit cards: These typically come with a pre-set spending limit, and you’re not obligated to pay off the balance in full at the end of each month. However, carrying a balance will incur interest charges, so it’s always recommended to pay your balance in full if possible.
- Charge cards: These cards don’t have a pre-set spending limit, but you’re required to pay off your balance in full each month.
It’s always best practice to pay off your balance in full each month, regardless of whether you choose a credit card or a charge card, in order to minimize interest costs and optimize the value of your rewards.
Demystifying the Amex Card Limit
Now, let’s address the elephant in the room: the Amex card limit. According to American Express policy, a person may only have five credit cards in their possession at any one time. Charge cards are not included in this cap, which is applicable to both personal and business credit cards.
Here’s a breakdown of the cards that count towards the limit and those that don’t:
Cards that count towards the limit:
- All personal and business credit cards
Cards that don’t count towards the limit:
- The Platinum Card® from American Express
- The Business Platinum Card® from American Express
- American Express® Gold Card
- American Express® Business Gold Card
- American Express® Green Card
The reason these specific cards are excluded is because they were historically considered charge cards. However, they have evolved into hybrid cards, offering the option to finance charges in certain situations.
Is the Amex Five Card Limit Still Relevant?
Although the five-card limit has long been in place, new information may indicate that this may be changing. A reader of the One Mile at a Time blog described how, despite having already accrued the maximum number of Amex credit cards, they were granted approval for two more of them.
This anecdotal evidence raises the question: is the five-card limit still strictly enforced? It’s important to note that this is just one data point, and further observations are needed to confirm a potential policy change
The Bottom Line: Optimize Your Amex Card Strategy
While the five-card limit remains the official policy, it’s worth staying informed about potential updates and data points that suggest a possible shift. Regardless of the limit, it’s crucial to carefully consider your individual needs and spending habits when choosing Amex cards.
Remember, the goal is to maximize the value of your rewards while managing your finances responsibly. By understanding the different types of Amex cards, the official limit, and recent developments, you can make informed decisions and optimize your Amex card strategy.
Which cards don’t count toward Amex’s card limit?
Not all Amex cards count toward the five credit card limit. Generally speaking, both personal and business cards count towards the limit, with the exception of the following:
Since these cards were formerly known as charge cards and had no fixed spending limit and could not be used to regularly finance charges, why are they excluded? However, nowadays these are all hybrid cards, as the option to finance charges is now more consistently available.
To give you an idea, I have nine Amex cards in total, five of which are credit cards and four of which are hybrid cards.
How Amex’s limit of five credit cards works
All the major card issuers have different restrictions when it comes to approving people for new cards. A significant limitation on the number of American Express credit cards you can obtain approval for has been in place (this does not include cards you have with other issuers).
Specifically, Amex limits consumers to having at most five credit cards with the issuer at a given time. It doesn’t matter if those are personal or business cards, as both count toward the limit. However, the trick is that non-credit cards, often referred to as hybrid cards, don’t count toward that limit.
Amex Card Application Rules – How Many Is Too Many?
FAQ
Is it bad to have 3 Amex cards?
Can you have 6 Amex credit cards?
What is the 2 90 rule for American Express?
Does Amex have a 5 24 rule?
How many AmEx credit cards can I apply for?
Reports show that you won’t be approved for more than one Amex card in a five-day period (the so-called 1-in-5 rule) and no more than two cards in a 90-day period (known as the 2/90 rule). There are exceptions to these rules, but they’re rare. You should plan your Amex credit card applications around these limits to increase your approval chances.
How many American Express credit cards can you hold at once?
American Express allows you to hold up to five personal or business credit cards at once—in any combination you prefer. However, the limit doesn’t apply to cards without a spending limit. If you already hold five American Express credit cards and want to apply for another one, you’ll have to cancel one of your existing cards.
How many credit cards are too many?
There is not a strict universal limit on the number of credit cards that is considered to be “too many” or “too few.” Your credit score won’t tank once you hit a certain number.
Does Amex have a credit card limit?
Previously, data points led us to believe that Amex had a five-card limit for credit cards and a five- to 10-card limit for charge cards — but there seemed to be many exceptions. Now, Amex seems to be tightening and formalizing its rules on how many credit cards and charge cards it will allow its customers to hold at once.