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Banks are cracking down on Churners – here’s the latest scoop
Bank of America has been quite lenient when it comes to approvals. In fact, it used to be that you could get approved for 5 Alaska cards in the same day. Clearly that business model was unprofitable and restrictions were imposed. Earlier this year card signups for the same card type were limited to every 90 days, and now, we have a new set of sign ups rules. The new rules are restrictive, relate to personal cards, and are pretty reasonable when compared to Chase or Citi.
The 2/3/4 Rule
According to Doctor of Credit – who has quite the collection of data points – the rule is such:
- No more than 2 cards in 2 months
- No more than 3 cards in 12 months
- No more than 4 cards in 24 months
These apply to Bank of America cards specifically, whereas Chase’s 5/24 rule applies to all new sign ups. It also appears to apply to personal cards and ISN’T restricting business card approvals. This is great for those who have small businesses, like myself.
How I see it.
BofA doesn’t have THAT many options I’m interested in, or have been interested in. I currently hold 2 Alaska Biz cards for each of my small businesses. I’ve been tempted to sign up for the Asiana card, the Virgin Atlantic card, and I’m sure I’ll pick up an Alaska personal card. So while 4 cards in 24 months is restrictive, it only applies to BofA cards, and their options aren’t as compelling as Chase or Amex. Things could be much worse, and let’s keep our fingers crossed they continue to exempt business versions.
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