Does Bank of America Have New Anti Churning Rules?
I really do miss the good ole days. Back when things were easy and the points were flowing. One by one the rivers have been reduced to a dribble and the wells are almost completely dry.
Bank of America used to be our “safe place” a place of safe harbor for people in the game. But people ran rampant and abused our safe harbor for all it’s worth. Some signed up for 8 versions of the same card…back to back to back. Bank of America became a scorned lover and started to say no more.
First Bank of America instilled the 2/3/4 rule. Now they have been denying people because they didn’t have a banking relationship. Does this combination make it the toughest approval in the biz now?
It is almost like Bank of America is the love child of Chase’s 5/24 rule and US Bank’s Altitude application rules. And it is one ugly baby.
Bank of America 2/3/4 Rule Explained
Before I get to the new data points I thought it would be good to review Bank of America’s 2/3/4 rule:
- 2 Bank of America cards allowed per rolling 2 months
- 3 Bank of America cards allowed per rolling 12 months
- 4 Bank of America cards allowed per rolling 24 months
This is for Bank of America cards only. It also does not include business cards either, only personal cards.
Bank of America does take applications from outside banks into consideration during the approval process. There is no hard and fast rule when considering outside bank applications though.
New Application Approval Rules
It seems now that Bank of America has been denying people based on the fact that they don’t have a bank account with BOA. Some have even been sent a letter asking for a $1500 CD in order to be approved. This had happened on business cards in the past but it is new for personal cards.
Windbag Miles had an article about it last month and he had 3 data points that came to the same conclusion. Shawn said he has seen similar reports as well.
It seems like this may be a new barrier to entry. I don’t know if Bank of America has any products worth getting a bank account for but they do typically have a checking account sign up bonus.
Just be sure to keep it to regular banking if you open up a Bank of America checking account.
My Personal Experience
I have applied for the BOA Premium Rewards card twice now and been denied both times. Once was during an App-O-Rama and the other time was yesterday after my IHG card approval. I do not fall into any of the 2/3/4 rules and I have a bank account with Bank of America so I am assuming it is my overall hard inquires count that lead to my denial.
While I am not sure if this is the toughest regulations of all of the banks, it is the first two fold process out there. I wonder if others will flock towards this method of thinking going forward.
It makes sense from a business prospective. If you can get a customer to bank with you, use your credit cards and service their mortgage, all at the same time, then they are less likely to leave. Even if it is just because of the hassle factor. I am just not sure if Bank of America has enough goodies to make this stick.
Have you run into this issue? Are you willing to sign up for a checking account to gain access to their credit cards?