Understanding USA credit card rules can be hard. American laws guide how we use credit cards. Rules on getting cards and welcome bonuses differ a lot.
Chase has a “5/24 rule.” They won’t approve you if you’ve opened five or more cards in two years. American Express limits you to five cards. These rules help stop too much credit card use.
Bank of America has a “2/3/4” rule. You can get two new cards in 30 days, three in a year, or four in two years. Capital One lets you have only two personal cards. Citi’s rules vary from 24 to 48 months for bonus eligibility.
Knowing these rules helps you plan better. It’s not just about getting a card. It’s about getting the most benefits while following the rules.
USA credit card rules and state regulations
Credit card rules in the USA change a lot from state to state. Each state has its own rules on surcharges, fees, and what’s needed to follow the law. It’s important for both businesses and customers to know these rules.
Legal status of credit card surcharges by state
By February 2024, most US states let businesses charge extra for credit card use. But, California, Georgia, and Texas are okay with it. On the other hand, Connecticut, Maine, and Massachusetts say no to extra charges. New York has special rules for showing these fees.
State-specific restrictions and compliance requirements
Every state has its own way of handling extra charges. Illinois says you can’t charge more than 1% extra. Colorado lets you charge up to 2%, and Montana up to 3%. Michigan wants you to tell everyone about the fees.
Businesses must tell the card companies and customers about the extra charges. They also need to list them separately. And, they can’t charge more than what it costs to process the card.
Credit card processing fee limitations
In the USA, you can’t charge more than 3% extra for using a credit card. But, Colorado is stricter, at 2%. Some card companies even let you charge up to 4%.
In 2023, businesses paid $100.77 billion in fees for Mastercard and Visa. It’s also important to follow PCI rules to keep customer data safe.
| State | Surcharge Status | Maximum Rate |
|---|---|---|
| Illinois | Allowed | 1% or total processing fee |
| Colorado | Allowed | 2% |
| Montana | Allowed | 3% |
| Connecticut | Prohibited | N/A |
Major credit card issuer policies and restrictions
Credit card rules in America differ among issuers. This shows the variety in USA credit card provisions. It’s key for applicants to know these American credit card standards.
American Express application rules and limits
American Express lets you have up to five traditional credit cards and ten with no spending limit. You can apply for two cards every 90 days. They have a “once per lifetime” rule for welcome offers, but you can reapply after a few years.
They also have a tool to check if you qualify for welcome offers.
Chase card application guidelines
Chase has a “5/24 rule” for new card approvals. This rule applies if you’ve opened five or more cards in 24 months. They also limit bonuses within card families, making it important to plan your applications.
Citi and Capital One approval policies
Citi limits approvals to one card every eight days and two in 65 days. Bonus rules differ by card. Capital One lets you get one new card every six months, with a limit of two personal cards.
These rules fit with broader credit card guidelines in America.
Bank of America and Discover card restrictions
Bank of America limits you to four cards, without rules on how often you can apply. Discover lets you have a maximum of two cards. You can apply for the second card after a year of having the first.
Welcome bonus eligibility requirements
Most issuers need good to excellent credit (FICO 670+) for approval. Rules on bonus eligibility and reapplying after closing accounts vary. These rules help ensure responsible lending in America.
| Issuer | Card Limit | Application Frequency | Bonus Rule |
|---|---|---|---|
| American Express | 5 traditional, 10 no preset limit | 2 every 90 days | Once per lifetime (with exceptions) |
| Chase | No set limit | 5/24 rule | Varies by card family |
| Citi | No set limit | 1 every 8 days, 2 in 65 days | Varies by card |
| Capital One | 2 personal cards | 1 every 6 months | Varies |
| Bank of America | Often 4 max | No published rules | Varies |
| Discover | 2 max | Second after 1 year | Varies |
Conclusion
Understanding US credit card rules is key for everyone. The rules keep changing, like with new laws. For example, the Consumer Financial Protection Bureau (CFPB) has helped a lot.
They say families will save over $10 billion a year because of their new rule. This is a big win for many.
The CFPB’s new rule lowers late fees from $32 to $8. This helps over 45 million people save about $220 each year. It shows how important it is to know about credit card laws.
As credit cards evolve, so do the rules. Now, Buy Now, Pay Later (BNPL) loans are being watched closely. The CFPB says BNPL loans are like credit cards and must follow certain rules.
This change reminds us all to keep up with credit card laws. It helps us avoid problems and makes sure our transactions go smoothly.
