Curious about expanding your wallet with more American Express cards? You're not alone! Many people wonder about the limits, benefits, and strategies for holding multiple Amex products. It's a smart question, as understanding American Express's policies can help you maximize rewards, manage your finances, and avoid application pitfalls. Let's dive in and explore the ins and outs of how many American Express cards you can have.
Step 1: Understand the Amex "Five-Credit-Card" Rule
First things first, let's address the most common guideline. American Express generally limits individuals to a total of five credit cards at a time. This "five-credit-card" rule is a widely accepted guideline, but it comes with nuances.
What Counts Towards the Five-Card Limit?
Personal Credit Cards: These are your standard consumer credit cards like the Blue Cash Everyday® Card, Delta SkyMiles® Gold American Express Card, or Amex EveryDay® Preferred Credit Card.
Small Business Credit Cards: Cards designed for small businesses, such as the American Express Blue Business Cash™ Card, also count towards this limit.
What Doesn't Count? The "Hybrid" Exception
Here's where it gets interesting! The five-card rule does not apply to charge cards. This is a crucial distinction.
Charge Cards: American Express is famous for its charge cards, which typically have no pre-set spending limit and require you to pay your balance in full each month. Examples include:
The American Express® Green Card
The American Express® Gold Card
The Platinum Card® from American Express
Because these are charge cards and not traditional credit cards, they offer flexibility if you want to hold more than five Amex products. This means you could theoretically have five credit cards and several charge cards.
Step 2: Differentiating Between Credit Cards and Charge Cards
To truly grasp how many Amex cards you can have, it's essential to understand the fundamental differences between credit cards and charge cards.
Credit Cards: Revolving Credit with a Set Limit
Definition: A credit card offers a revolving line of credit up to a specific, pre-set credit limit. You can carry a balance from month to month, though interest will be charged on the outstanding amount.
Credit Limit: American Express assigns a specific credit limit based on your creditworthiness, income, and other financial factors. For example, the American Express Blue Business Cash Card typically offers credit limits ranging from $2,000 to $25,000 for new cardholders, though higher limits are possible.
Flexibility: While you can carry a balance, doing so can incur significant interest charges.
Charge Cards: No Pre-Set Spending Limit (But Not Unlimited!)
Definition: Charge cards have no pre-set spending limit. This means you don't have a fixed credit limit like a traditional credit card. However, this doesn't mean unlimited spending.
Spending Power: Your spending power on a charge card is flexible and adapts based on factors such as your payment history, current spending patterns, credit record, and financial resources.
Payment Requirement: The crucial difference is that with a charge card, you are typically required to pay your full balance by the due date each month. Failure to do so can result in penalties.
Examples: The American Express Green, Gold, and Platinum Cards are prime examples of charge cards.
Step 3: Understanding Application Rules and Considerations
Even with the five-credit-card rule and the charge card exception, American Express has other application rules and considerations you should be aware of.
The "One Welcome Offer Per Lifetime" Rule (Mostly)
General Rule: American Express is known for its "once per lifetime" rule for welcome bonuses. This means you can generally only receive the welcome bonus for a specific card product once in your lifetime.
Variations and Exceptions: While strict, there can be exceptions or targeted offers that allow you to earn a bonus again for a card you previously held. However, it's not the norm. Always read the terms and conditions carefully before applying.
Credit Score and Financial Health
Good Credit is Key: To be approved for any American Express card, especially multiple ones, you'll need a strong credit score and a healthy financial profile. This includes a good payment history, low credit utilization, and a stable income.
Income Requirements: American Express will assess your income to determine your ability to manage the credit or spending capacity they offer. For instance, some premium cards have higher stated or implied income requirements.
Application Frequency
"Pop-Up" Warnings: American Express has an internal system that can sometimes give you a "pop-up" warning during the application process if they deem you ineligible for a welcome bonus due to previous cardholding or recent applications. This can prevent a hard inquiry on your credit report if you decide not to proceed.
General Guidance: While there isn't a strict public rule on how many applications you can submit within a certain timeframe, applying for too many cards too quickly can raise flags and may lead to denials. It's generally advisable to space out your applications.
Step 4: Strategic Card Accumulation
Now that you understand the rules, let's talk about how you can strategically build a portfolio of American Express cards that meets your financial and lifestyle needs.
Identify Your Spending Habits
Analyze Your Needs: Do you spend a lot on dining and groceries? Travel frequently? Have significant business expenses? Different Amex cards excel in different spending categories.
Complementary Cards: Look for cards that complement each other. For example, you might pair a high-earning cash back card for everyday expenses with a premium travel charge card for its lounge access and travel benefits.
Prioritize Credit vs. Charge Cards
Credit Card Needs: If you need the flexibility to carry a balance for certain purchases (though it's generally recommended to pay in full), credit cards are necessary. Be mindful of the five-card limit.
Charge Card Benefits: If your goal is to maximize travel perks, premium benefits, and have flexible spending capacity for large purchases (which you'll pay off monthly), charge cards are an excellent way to expand your Amex holdings beyond the five-credit-card limit.
Example Portfolio (Illustrative)
Here's an example of how someone might strategically hold several Amex cards:
Amex Platinum Card: For premium travel perks, lounge access, and hotel status. (Charge Card)
Amex Gold Card: For excellent rewards on dining and U.S. supermarkets. (Charge Card)
Blue Cash Preferred® Card: For high cash back on groceries and streaming services. (Credit Card - counts towards the 5-card limit)
Delta SkyMiles® Platinum American Express Card: For airline-specific travel benefits and earning Delta miles. (Credit Card - counts towards the 5-card limit)
American Express Blue Business Cash™ Card: For business expenses with simple cash back. (Credit Card - counts towards the 5-card limit)
In this scenario, the individual has three credit cards and two charge cards, adhering to the five-credit-card limit while still having five active Amex products.
Step 5: Managing Multiple Amex Cards Responsibly
Having multiple credit and charge cards, while beneficial for rewards and perks, requires diligent management.
Pay Bills On Time and In Full (Especially Charge Cards)
Avoid Interest and Fees: Late payments can hurt your credit score and incur fees. For charge cards, paying the full balance on time is mandatory to avoid penalties.
Maintain Good Standing: Keeping all your Amex accounts in good standing is crucial for continued access to their products and for future approvals.
Monitor Spending
Stay Within Budget: With multiple cards, it's easy to lose track of spending. Use budgeting tools or the Amex app to monitor your expenditures across all accounts.
Utilize Spending Power Tools: For charge cards, American Express offers a "Check Spending Power" tool within their app and online account, which can help you determine if a large purchase will be approved.
Understand Card Benefits and Fees
Maximize Benefits: Make sure you're actively using the benefits and rewards of each card to justify any annual fees.
Review Annual Fees: Keep track of the annual fees for each card. If a card's benefits no longer outweigh its fee, consider downgrading or canceling it (though be mindful of the impact on your credit history).
Frequently Asked Questions
How to check my current American Express credit card limit?
You can typically check your current American Express credit card limit by logging into your online American Express account or through the Amex mobile app. The credit limit is usually displayed on your account summary page.
How to apply for more than five American Express cards?
You can apply for more than five American Express cards by strategically including Amex charge cards in your portfolio, as they generally do not count towards the five-credit-card limit.
How to increase my credit limit on an American Express credit card?
You can request a credit limit increase on your American Express credit card through your online account or by contacting customer service. Amex may also offer automatic credit limit increases based on your responsible usage and payment history.
How to use the "Check Spending Power" feature for Amex charge cards?
For American Express charge cards (like Platinum, Gold, Green), you can use the "Check Spending Power" feature within the Amex mobile app or your online account to see if a large purchase will likely be approved.
How to know if an American Express card is a credit card or a charge card?
Credit cards will explicitly state a "credit limit," while charge cards will typically state "no pre-set spending limit" or similar language in their terms and conditions or features.
How to manage multiple American Express cards effectively?
Manage multiple American Express cards effectively by using online banking or the Amex app to track spending, setting up automatic payments, and reviewing your card benefits and annual fees regularly.
How to cancel an American Express card without hurting my credit score too much?
To minimize the impact on your credit score, consider keeping your oldest credit cards open. If you must cancel, pay off the balance completely, and be aware that closing an account can reduce your overall available credit and potentially impact your credit utilization ratio.
How to get approved for premium American Express cards like the Platinum Card?
Approval for premium American Express cards generally requires excellent credit, a strong income, and a solid financial history. American Express looks for applicants with a demonstrated ability to manage high spending.
How to refer a friend for an American Express card?
You can usually refer a friend for an American Express card through your online account's referral program section. If your friend is approved, you typically receive bonus Membership Rewards points.
How to maximize rewards with multiple American Express cards?
Maximize rewards by strategically using each card for the categories where it offers bonus points (e.g., use your Amex Gold for dining and groceries, and a travel card for flight bookings) and by taking advantage of welcome offers and ongoing card benefits.
