Getting Approved for Rewards Cards
Rewards credit cards offer valuable perks, but to ensure approval, it’s important to follow key rules for applying for credit cards strategically. Understanding credit card sign-up bonus requirements, minimum credit scores, and common reasons for credit card application rejection can increase your chances of success. This guide covers everything from the 5/24 rule for credit cards to credit card application tips for approval, so you can avoid pitfalls and maximize benefits.
1. Know the 5/24 Rule for Credit Cards
The 5/24 rule for credit cards is a restriction Chase applies to card applications. If you’ve opened five or more credit cards in the last 24 months, you’ll likely be denied, making it critical to plan applications strategically.
Application Tip: Start with Chase cards if you’re new to rewards. This way, you can avoid unnecessary rejections due to this rule and keep your options open for other issuers later.
2. Check Your Credit Score
Your credit score needed for travel rewards cards is another critical factor, as most require good to excellent credit. Before applying, check your credit report to address any credit card rejection reasons like high utilization or missed payments.
Application Tip: Keep your credit utilization under 30% to boost your score. Many best credit cards for travel points approval require scores above 670, so ensuring a solid score increases your chances.
3. Understand Income Requirements for Credit Card Approval
Income requirements for credit card approval vary by issuer and card type. High-end cards like the Chase Sapphire Reserve and Amex Platinum often require a solid income level, as issuers want assurance you can manage the spending required for these rewards cards.
Application Tip: Report household income if allowed, which includes a partner’s income. This can help if your individual income is lower but you have shared financial responsibilities.
4. Space Out Applications to Limit Hard Inquiries
Every new card application results in a hard inquiry on your credit report, which can temporarily lower your score. By spacing out applications, you minimize this effect and increase approval odds.
Application Tip: Try waiting 90 days between applications, or longer if you’re applying for high-tier cards. This helps avoid potential denial, a common reason for credit card application rejection due to multiple inquiries in a short period.
5. Choose Compatible Rewards Programs
When applying for multiple cards, look for ones with compatible rewards programs. Cards like Chase Sapphire Preferred and Chase Freedom Flex both earn Chase Ultimate Rewards points, allowing you to accumulate points faster across spending categories. This compatibility simplifies redemptions and helps you get more out of each card.
Application Tip: Research best credit cards for travel points approval and focus on cards with transferable or similar points systems to maximize rewards across your expenses.
6. Consider Business Credit Cards to Avoid the 5/24 Rule
Applying for business credit cards is another way to earn points without affecting your 5/24 status. Business cards from issuers like Amex or Capital One often don’t show up on personal credit reports, making them ideal for expanding rewards without affecting your approval chances for personal cards.
Application Tip: Sole proprietors, freelancers, or those with side income qualify for business cards. Use your Social Security number if you don’t have an EIN, as this is sufficient for most issuers.
7. Ensure You Can Meet Minimum Spending Requirements
Most credit card sign-up bonus requirements involve minimum spending within the first few months. Failing to meet this spending threshold can mean missing out on valuable rewards.
Application Tip: Time large purchases around your new card application or use the card for regular expenses. Avoid risky spending, such as buying gift cards or using cash advances, as these may be flagged by issuers and cause issues with rewards.
Applying for rewards points credit cards strategically can help you gain approval, avoid common credit card rejection reasons, and unlock valuable travel rewards. By following these essential rules—knowing the 5/24 rule, spacing applications, understanding credit score and income requirements, and planning for minimum spend—you’ll be well on your way to building an impressive rewards balance for travel and beyond.