Bank card welcome bonuses are the simplest method to earn rewards shortly. You could be keen to use for as many new playing cards as you may, as quick as doable, however which may not be the perfect concept.
In the event you take that strategy, you’ll doubtless run into resistance earlier than you recognize it. Banks could determine to not award you a welcome bonus for those who’ve already obtained one not too long ago, even when they approve your software.
Every financial institution has its personal insurance policies in place. Some guidelines are extra strict, and a few are extra strictly enforced. Many are specified by the bank cards’ phrases and circumstances, whereas others are patterns we’ve recognized.
Listed here are some guidelines you must comply with to keep away from being deemed ineligible for welcome bonuses.
TD: 12-Month Rule
Let’s start with TD, with one of many extra complicated and easily-misunderstood guidelines.
TD doesn’t have any agency guidelines round credit score approval, however their phrases and circumstances do “reserve the suitable to restrict the variety of accounts opened by one individual, and the variety of [points] awarded to anyone individual”.
Principally, TD outright tells you that they could be draconian for any arbitrary motive. In observe, although, their bank cards clearly state the rewards you must anticipate to obtain. I’ve by no means seen them be much less beneficiant than these specified limits.
Right here’s the wording of the effective print on the TD Aeroplan Visa Infinite Card:
In case you have opened an Account within the final 12 months, you’ll not be eligible for this provide.
On the floor, this nonetheless appears fairly restrictive. It appears like you may solely get one welcome bonus from TD each 12 months.
TD Aeroplan Visa Infinite Card
Welcome Bonus
As much as 50,000 Aeroplan factors
Annual Payment
First 12 months Free
First-12 months Worth
$662
Nonetheless, discover that “Account” is capitalized as a correct noun. Elsewhere in the exact same phrases and circumstances, the “Account” is outlined because the TD Aeroplan Visa Infinite Card.
Which means that for those who’ve opened this specific product, the Aeroplan Visa Infinite, within the final 12 months, you’re not eligible for the welcome bonus. However it’s not an issue for those who’ve opened a totally different bank card product, corresponding to a unique Aeroplan card or a card that earns one other sort of rewards.
Subsequently, you would conceivably earn a welcome bonus on each TD product inside 12 months, so long as they hold approving you for extra credit score.
Complicating issues, the TD First Class Journey Visa Infinite Card follows a six-month rule as an alternative:
This provide shouldn’t be obtainable clients who’ve activated and/or closed a TD First Class Journey® Visa Infinite* Account within the final 6 months.
Frustratingly, the First Class Journey card considers the date you final closed the cardboard as the beginning of the cool-down interval. Fortunately, the Aeroplan playing cards use the date you final opened the cardboard, so you may proceed to benefit from the card’s advantages till it’s time to reapply.
Finally, one product gained’t have an effect on one other, so it’s only a matter of preserving the delicate variations straight between them.
RBC: 1/90 Rule
Alternatively, RBC’s rule shouldn’t be formally said, but it surely’s quite simple.
RBC will solely approve one bank card software each 90 days. You’ll be mechanically rejected for those who attempt any sooner, and that is virtually at all times very firmly enforced.
RBC Avion Visa Infinite
Welcome Bonus
55,000 RBC Rewards factors
Annual Payment
$120
First-12 months Worth
$1,080
Some individuals have had restricted success by calling to push the second software via. In the event you do this, I’d counsel making use of for 2 playing cards that earn totally different rewards, like one Avion card and one WestJet card, so you can also make a compelling case in the event that they ask you why you need each.
It’s doable that RBC makes use of a unique approval course of for on-line, telephone, and in-person purposes. Moreover, their enterprise lending workforce operates independently from their client credit score division.
Nonetheless, I’ve by no means felt compelled to push the boundaries right here. The net software is fast and painless, and also you’ll doubtless be permitted so long as your credit score profile is in good order.
In addition to, making use of by way of totally different strategies would set off a number of credit score inquiries, defeating one of many main advantages of blitzing the identical monetary establishment for a number of new playing cards in a brief span of time. Luckily, this rule is just for new credit score purposes, and it doesn’t govern rewards in any respect.
You’d have the ability to apply for a brand new RBC card and product swap a second pre-existing RBC card inside the identical 90-day interval, and also you’d obtain the suitable bonuses on each, as a result of product switches should not credit-seeking occasions.
Different Huge 5 Banks
CIBC, Scotiabank, and BMO don’t have any agency guidelines round bank card purposes.
Scotiabank Gold American Specific Card
Welcome Bonus
45,000 Scene+ factors
Annual Payment
First 12 months Free
First-12 months Worth
$525
Scotiabank’s phrases and circumstances say that you simply’re not eligible for a welcome bonus for those who’ve had any Scotiabank retail bank card previously two years.
In observe, I’ve discovered this to be partially enforced: you’ll get the factors, however you won’t get an annual price waiver – and since you’re not entitled to 1 as a repeat cardholder, you don’t have a lot floor to face on for those who escalate to a human to kind out your incomplete welcome bonus.
CIBC additionally doesn’t have an official exclusion interval. In reality, for those who’re permitted for a excessive credit score restrict, you may typically open a number of new playing cards with the identical credit score inquiry.
This bodes properly for anybody trying to benefit from the not too long ago elevated gives on the CIBC Aventura Visa Infinite Card and CIBC Aventura Gold Visa Card.
General, I’d say that CIBC is extra choosy about credit score approval than they’re about factors being awarded.
Whereas BMO doesn’t have playing cards that encourage an aggressive strategy, I do know some Air Miles collectors who’re in search of one final hurrah because the program spirals downward. Once more, the phrases are partially enforced right here:
BMO AIR MILES World Elite Mastercard purposes have to be obtained between Might 1, 2020 and July 31, 2023 (the “Provide Interval”) to be eligible for the AIR MILES Bonus Miles and Annual Payment Refund gives … Bonus Provides are restricted to new accounts. Present BMO AIR MILES World Elite Mastercard clients who cancel their card in the course of the Provide Interval, and present BMO Mastercard clients who switch into this product in the course of the Provide Interval should not eligible for the Provides.
BMO is well-known for not awarding bonuses on product switches. Nonetheless, BMO has prolonged the “Provide Interval” numerous occasions, and I do know many individuals who’ve cancelled and reapplied since this provide started and are nonetheless receiving bonus miles.
American Specific: As soon as-in-a-Lifetime Rule
Of their phrases and circumstances for nearly each product, Amex clearly states that they gained’t award repeat welcome bonuses:
These gives are solely obtainable to new Platinum Card® Cardmembers (‘Cardmembers’). For present or former Platinum® Cardmembers, we could approve your software, however you’ll not be eligible for these gives. In the event you obtain factors in error, we reserve the suitable to deduct them out of your factors stability.
For a few years after this clause was launched, it wasn’t enforced, however extra not too long ago Amex has been cracking down on repeat welcome bonuses. Certainly, many cardholders who had utilized for and obtained repeat welcome bonuses have seen their relationships with Amex flip bitter.
Fortunately, the once-in-a-lifetime rule applies individually for every product. You’ll obtain the welcome bonus for those who’re permitted for a brand new Amex product that you simply’ve by no means had earlier than, even for those who presently or beforehand had many different playing cards and welcome bonuses.
You possibly can even apply for these as quick as you need, with one notable exception…
American Specific Enterprise Playing cards: 90-Day Rule
You’ll be mechanically rejected for those who apply for the Enterprise Platinum and Enterprise Gold playing cards, Amex’s two MR-earning enterprise cost playing cards, inside 90 days.
Enterprise Platinum Card from American Specific
Welcome Bonus
90,000 MR factors
Annual Payment
$499
First-12 months Worth
$1,646
In some respects, Amex treats these two playing cards as variants of the identical product on the back-end. Someplace within the system, your second software will probably be flagged as a reproduction.
I’d say this isn’t an enormous inconvenience, although. It doesn’t have an effect on every other Amex playing cards, so you would do, say, a Enterprise Platinum along with actually the rest apart from a Enterprise Gold.
The attraction of the Enterprise Gold has dipped with the lack of the most popular suppliers program, whereas the lower-fee Enterprise Edge has remained aggressive ever since switching to MR factors from MR Choose factors. Even for those who’re blowing via the Amex Flowchart at mild pace, there are greater than sufficient different private and enterprise Amex playing cards to maintain you busy till you will get the Enterprise Gold.
MBNA: 5/6 Rule
That is maybe Canada’s most well-known bank card software rule. We’ve written a full submit on the 5/6 Rule, so I’ll briefly recap right here.
This rule is a bit totally different, in that it has nothing to do with new accounts or purposes at MBNA. As a substitute, MBNA will reject your software based mostly on credit-seeking behaviour with different establishments.
Principally, if in case you have 5 or extra TransUnion inquiries previously six months, together with the inquiry they do for the cardboard you’re presently making use of for, MBNA will reject your software.
There’s a approach round this, nevertheless. In the event you’re an present MBNA cardholder, you may push the appliance ahead by splitting credit score from one other card. When you achieve this, you may anticipate to obtain the welcome bonus. Like many different issuers, MBNA is extra involved about credit score threat than they’re about repeat rewards.
Notice that not like its namesake, the Chase 5/24 Rule within the US, this rule refers to credit score inquiries previously six months, somewhat than new bank cards opened efficiently. Subsequently, a failed software can be a knock towards you in MBNA’s eyes – all of the extra motive to comply with these guidelines with different banks to make sure the best likelihood of success.
In fact, the discontinuation of the co-branded Alaska Airways bank cards implies that MBNA is probably going see fewer purposes than it did in previous years.
HSBC: 12-Month Rule
HSBC is likely one of the extra strict banks with respect to repeat bonuses, and so they have a fame for imposing this coverage to the letter of the regulation:
Provides solely apply to permitted HSBC World Elite Mastercard accounts for purposes obtained between November 1, 2022 and February 28, 2023. Just one new account per buyer is eligible for these Provides. The next candidates should not eligible for any of the Provides: Candidates who’ve held an HSBC World Elite Mastercard, HSBC Premier World Elite Mastercard or HSBC Jade World Elite Mastercard account within the 12 months earlier than submitting the appliance
That is the worst of each worlds in comparison with TD’s varied limitations. There’s an extended 12-month ready interval, however the clock doesn’t begin ticking till you’ve closed the outdated card.
HSBC World Elite® Mastercard®
Welcome Bonus
As much as 80,000 HSBC Rewards factors
Annual Payment
First 12 months Free
First-12 months Worth
$724
With a versatile rewards forex and a 100,000-point welcome bonus coming round about annually, the HSBC World Elite Mastercard is one you would possibly wish to apply for repeatedly.
Nonetheless, the problem with HSBC is that the cycle takes a very long time. You must wait a minimum of six months after getting the cardboard to obtain a lot of the welcome bonus factors (even for those who meet the spending thresholds sooner), so you may’t cancel or downgrade the cardboard shortly. Then, there’s the 12-month wait to reapply. Lastly, think about that the method of getting an HSBC bank card could be lower than clean, generally with a number of department visits, and also you could be questioning for those who ought to trouble reapplying in any respect.
As a substitute, the HSBC World Elite Mastercard presents a powerful case for being a long-term keeper. In opposition to a web $49 annual price after utilizing the annual journey enhancement credit score, it’s uncommon to see a card with its distinctive mix of advantages: no international transaction charges, sturdy rewards on all purchases with industry-leading charges on journey, and worldwide Mastercard acceptance with the comfort of being issued by a Canadian financial institution.
In addition to, with the present welcome bonus, a few of the factors gained’t even be delivered till the second 12 months. Now can be a good time to use, particularly for those who’re involved in including and preserving the cardboard for years to come back.
Aeroplan Limits Welcome Bonuses
Whereas Aeroplan isn’t a financial institution, the loyalty program companions with banks to supply co-branded bank cards. Aeroplan has not too long ago up to date its basic phrases and circumstances, and a part of the replace positioned clear language on limiting repeat welcome bonuses.
Aeroplan could, in its sole discretion, select to restrict the variety of Welcome Bonuses or comparable bonuses or incentives a Member could obtain in any interval, and, along with the opposite treatments set forth in these Phrases and Circumstances, reserves the suitable to droop, revoke or terminate the Account of any one that engages in a behaviour of extreme use of the Welcome Bonus gives. Such behaviours embody however should not restricted to: (i) making use of for a number of Aeroplan Credit score Playing cards throughout a number of product varieties or throughout a number of monetary establishments that subject an Aeroplan Credit score Card; (ii) a sample of cancelling, or disengaging in, an Aeroplan Credit score Card shortly after receiving a Welcome Bonus or comparable bonus or incentive; and (iii) a sample of buying after which cancelling or returning any services or products for which Aeroplan Factors have been issued.
Whereas it’s normally as much as banks to restrict the variety of occasions a cardholder can obtain a welcome bonus, Aeroplan has clearly said that it might probably and can take sweeping measures towards anybody who seems to be abusing its personal phrases and circumstances.
Which means that Aeroplan has recognized that they don’t need members to open a number of playing cards on the identical tier from totally different banks, or a number of playing cards at totally different tiers from the identical financial institution, a minimum of in fast succession. If this was a part of your sport plan, it could be greatest to undertake a longer-term technique and discover methods to maximise your earn along with your playing cards to keep away from any disciplinary motion from Aeroplan.
Conclusion
Every financial institution makes use of a barely totally different coverage to restrict how regularly you may earn welcome bonuses on new bank cards. This listing is way from complete, however by observing what the banks inform us with their phrases and actions, we will develop our personal technique as shoppers to keep away from making any missteps as we search to maximise our rewards.
Generally the phrases and circumstances will explicitly say for those who’re entitled to a different bonus. Alternatively, some banks use their algorithms for detecting dangerous credit-seeking behaviour to de facto throttle your rewards by merely rejecting you for brand spanking new bank cards.
Both approach, I encourage you to go as quick as you may with out overclocking your credit score engine in your method to supercharging your journey rewards.
