American Express’ Slow & Steady Path of Putting Restrictions on More Cards

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Each bank has rules when it comes to credit card applications. If you’ve been at this for a while, as I have, you’ve seen many rule changes over the years. Unfortunately, most of these changes don’t work in our favor. While I understand that these restrictions are necessary to prevent misuse and abuse of the system, it can be frustrating for those who simply want to apply for a few cards a year without any hassle.

I remember when Chase first implemented the 5/24 rule. This was a huge deal, as it eliminated many people from getting any card from Chase unless they stopped applying for new cards. Since there was no official statement about the rule or how it worked, it was up to us to figure it out. People tried, and are still trying, every way possible to circumvent the system, but it’s now something we all know and make decisions about accordingly.

And that’s what I’m talking about. We make decisions based on the rules at the time. But the banks can change those rules whenever they want and we have to deal with the consequences.

This is happening with American Express and what people call the “family rule” or the “little brother” rule. It’s a significant shift to AMEX card approvals and has eliminated the ability for many cardholders to earn a sign-up bonus, virtually overnight.

In the past, American Express allowed customers to earn a sign-up bonus on a particular card as long as they hadn’t received a bonus on that card previously. However, AMEX now states that customers can only earn one bonus per “lifetime.” It is unclear how far back AMEX looks to determine if a customer has received a previous bonus on a particular card.

That is a bummer of a rule, as other banks will allow you to earn a sign-up bonus on average every 2 to 4 years. But people know the rule and have learned to live with it.

Family or Little Brother Rule

Then, sometime around the end of 2023, some new language appeared in the terms and conditions for certain AMEX cards. In addition to not earning a sign-up bonus for the card you were applying for, you may now be ineligible for a bonus if you previously earned a bonus on any higher card in the same family.

Here are some of the different American Express Card families:

• AMEX Charge Cards (Green, Gold, Platinum)
• AMEX Everyday
• AMEX cashback cards
• Delta SkyMiles cards
• Hilton Honors cards
• Marriott Bonvoy cards

AMEX has extended this rule to personal cards across several families; however, business cards are yet to be affected.

Here’s the rule in practice:

• AMEX Green Card -You may not be eligible to receive a welcome offer if you have or have had this Card, the Platinum Card®, the Platinum Card® from American Express Exclusively for Morgan Stanley, the Platinum Card® from American Express Exclusively for Charles Schwab, the American Express® Gold Card or previous versions of these Cards.
• AMEX Gold Card -You may not be eligible to receive a welcome offer if you have or have had this Card the Premier Rewards Gold Card, the Platinum Card®, the Platinum Card® from American Express Exclusively for Charles Schwab, the Platinum Card® from American Express Exclusively for Morgan Stanley or previous versions of these Cards.
• AMEX Platinum Card -You may not be eligible to receive a welcome offer if you have or have had this Card, the Platinum Card® from American Express Exclusively for Charles Schwab, the Platinum Card® from American Express Exclusively for Morgan Stanley or previous versions of these Cards

This means once you’ve held the best card in an AMEX family, you MAY be ineligible for the welcome offers for every other card in the same family.

The same rule is now in place for the Delta SkyMiles cards:

• Delta Blue -You may not be eligible to receive a welcome offer if you have or have had this Card, the Delta SkyMiles® Options Credit Card, the Delta SkyMiles® Gold American Express Card, the Delta SkyMiles® Platinum American Express Card, the Delta SkyMiles®  Reserve American Express Card or previous versions of these Cards.
• Delta Gold -You may not be eligible to receive a welcome offer if you have or have had this Card, the Delta SkyMiles® Platinum American Express Card, the Delta SkyMiles® Reserve American Express Card or previous versions of these Cards.
• Delta Platinum -You may not be eligible to receive a welcome offer if you have or have had this Card, the Delta SkyMiles® Reserve American Express Card or previous versions of these Cards.
• Delta Reserve -You may not be eligible to receive a welcome offer if you have or have had this Card, or previous versions of this Cards

What Does This Mean For AMEX Applications?

That depends on how many American Express cards you’ve had. For example, I have a Delta Gold SkyMiles card and previously had a Platinum SkyMiles card. Until now, I could still have received the welcome bonus for the Blue card and the Delta Reserve card. But now, I’d only be sure to get the bonus on the Delta Reserve.

Regarding AMEX charge cards, Sharon has only ever had a Green card. If we were ever to apply for a different card, we’d get the Gold Card first, before the Platinum. That’s because once you’ve had the Platinum card, you may be ineligible for the sign-up bonus for the Gold Card.

There are questions about the wording of the offers, saying that you “may” not be eligible instead of saying you “will” not be eligible. That’s splitting hairs, but some claim to have applied for cards in the same family and been approved, while others have received the AMEX pop-up box saying they’re not eligible for the welcome offer.

If you’re getting started and are in this for the long haul, it would make sense to start small and eventually work your way up the ladder in each card family. Gone are the days when you could start by getting a 100K welcome bonus for the AMEX Platinum and then apply for the other cards later.

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This post first appeared on Your Mileage May Vary