Application restrictions for Capital One's personal credit cards now feature a 48-month ban following account closure. The company provides further details on the new policy.
Newsflash: Matt Moffitt Email
Advertising policy | Product review methodology
In the world of credit cards, Capital One has always been known for its strict application restrictions – a reputation shared with the other major U.S. issuers like Chase, American Express, and Citi. And, despite the rules remaining the same, Capital One has made a change… sort of.
Up until recently, Capital One had a vague “hit-or-miss” policy for approving new personal card applicants. That's all changed now, with the bank clarifying its stance. If you've received a new cardmember bonus for the same Capital One personal card in the last four years, you're out of luck. Yes, you read that right!
So, is this a good or bad move? Well, it's neither, really. It just means Capital One's now on the same page as its competitors like Chase and Citi, who also adhere to a similar 48-month rule for cards like the Chase Sapphire Reserve and the Citi ThankYou points-earning cards.
It's worth noting that even folks with stellar credit scores and perfect payment histories have struggled to get their hands on a Capital One card. Case in point, yours truly. I've got the Venture X, and despite a loanworthy score and no missed payments, I still got the boot when I applied for the Venture Rewards Card a couple of months ago. This isn't unusual for the TPG team or our readers.
Now, here's an interesting tidbit – you can hold both the Capital One Venture X and Venture Rewards cards at the same time, as long as you meet the eligibility criteria and are approved. However, you can't have Sapphire Preferred and Sapphire Reserve cards from Chase in your wallet simultaneously.
Bonus Offers from Our Partners- Capital One Venture Rewards Credit Card: Earn 75,000 miles- Capital One Venture X Rewards Credit Card: Earn 75,000 miles- Capital One Venture X Business: Earn 150,000 bonus miles- Capital One VentureOne Rewards Credit Card: Earn 20,000 miles- Capital One Spark Cash Plus: Unlock big cash bonuses for your business
In conclusion, the change in Capital One's personal credit card application policy might make it more difficult for frequent applicants to score new cards, but it does bring the bank's 48-month rule in line with its competitors. This move mirrors the broader credit card industry’s emphasis on tightening regulations to protect against rapid churn and manage risk.
- Capital One's new policy clarifies that if you've received a new cardmember bonus for the same Capital One personal card in the last four years, you will not be approved, mirroring similar rules implemented by credit card issuers like Chase and Citi.
- Despite having a strong credit score and perfect payment history, some applicants have struggled to obtain Capital One credit cards, with examples like Matt Moffitt and the TPG team experiencing rejection even for high-value cards such as the Capital One Venture Rewards Card.
- Unlike Chase and Citi, who do not allow holding both Sapphire Preferred and Sapphire Reserve cards at the same time, Capital One allows cardholders to hold both the Venture X and Venture Rewards cards concurrently, provided they meet the eligibility criteria and are approved.
- With Capital One's updated 48-month rule for personal credit card applications, the bank aligns itself with the broader credit card industry trend towards tightening regulations to protect against rapid churn and manage risk, as seen in the news and finance spaces.
