Rules to Know for Citi Credit Card Applications: 2 Year Rule!

By Gavin | July 26, 2018

Rules to Know for Citi Credit Card Applications: 2 Year Rule!

It's talking about the rules for a Citi credit card application, how to maximize the value of the credit cards, how to get the most cash back and also how to travel for free, and then talk about some bonus rules and how they affect your application. Finally, to recommend 2-year rule, that is to apply for the card with no annual fee first, and then apply for the one with annual fee after one year. In this way, to get two bonuses in the span of two years.

It's a passion from SMB, and today we're going to talk about everything you need to know for a Citi credit card application, but first if you are new here, we're all about how to maximize the value of your credit cards, so how to get the most cash back and also how to travel for free.

Let's get started the first thing, what we're going to talk about is some application rules, and then we're going to talk about some bonus rules and how they affect your application.

The first rule is 1 & 8, this means that you can have one application every eight days, if you'll fly for a second one, let's say you try to do two a day, the second application is automatically going to get rejected, here we're talking about new applications and not new accounts, so if you do want two Citi cards in a very short amount of time, basically apply for once a day, and wait eight or nine days before applying for the second one.

The second rule is two and sixty-five, this means that you can have two Citi applications every 65 days, any subsequent applications will automatically be rejected. For example, if you apply for a card today, then in eight days you can apply for your second one, and 65 days you can apply for your third one, and then eight days from the 65 day mark, so that is 73 days you can apply for your fourth card, most people don't apply for that many Citi cards though, just because there are a lot of rules related to the bonuses.

We're going to talk about that in business cards have an additional rule called 1 in 90, so you can only apply for one business card every 90 days, otherwise subsequent applications will automatically be rejected, something to be aware of is that business cards count towards the 1 in 8 and a 2 and 65 roll, so it's not like it's business and personal, and it's separate.

There are basically the same rules except for business cards just have an additional rule. For example, you can apply for one personal card or one business card within a 65-day window, but if you try to do the same, you did two personal cards and one business card in the same window, the business card would automatically be rejected. The 1 in 8 and the 2 and 65 are sometimes called an 865 rule, but for me, it's easier separating them than putting them together, so these three roles are the ones that are fixed and built into the system, so they're basically hard rules.

There are a few other soft rules that might apply to you, though the first rule is 1 in 60, so one application every 60 days, but this rule does not seem to apply to all people, if you go on flyer talk or reddit people talk about how they try to apply for a second card within the sixty-five day window, they get rejected, they call Citi and asked about it, and Citi the representatives basically tells them that you can only have one application every 60 days, since people have been able to get around this dough, I don't think it applies all people and probably applies to people who don't have citi credit cards or bank accounts.

The next rule is 6 and 6, so you can only have six hard inquiries in the last six months, otherwise you'll automatically be rejected, the hard inquiries are not specific to Citi, so let's say you applied for to Bank of America cards to taste ones, and to American Express cards you would be a six harder inquiries in the last six months, meaning that any City application would automatically be rejected, this is not a fixed rule, so it might not even apply to you, my guess is that it applies to people who have relatively low average age of account.

The next rule to be aware of and it's a really big one is that you can only get a bonus for a specific product group once every two years if you look at the chart you can easily see the groupings. For example, if you applied for one of the Hilton cards, you will not be eligible for another Hilton sign up offer until two years from now. You might be thinking to yourself, that's not too bad, but there is another consideration, the two-year clock is not just based on when you got the last card, it's also based up whether your product in your card or whether you cancel a card. Let's say if I get a card today, if I do a product change in one year's time, I realized I don't like it anymore, then that's going to reset the clock, and I'm going to have to wait two years from the date I either cancel the card or product changed it, this plays a huge role because it's going to affect what card you should apply for. Let's run through two examples.

Example one, we apply for the Hilton card with the annual fee, which has the bigger sign-up offer right now. If you want to keep the card for two years, then you're going to be eligible for another Hilton offer in 2019, if after year 1 you realize it's not a fit for you anymore, you want to downgrade it or cancel it, let's say in 2018 you decide to do that, then you're going to reset the clock and you won't be eligible for another Hilton offer until 2020.

In example 2, we apply for the no annual fee Hilton card, and again since there is no annual fee, there is no reason to get rid of it, so we apply that right now two years from now, and 2019 you can apply for the one with an annual fee with the higher offer, and again a year after that you can decide to downgrade that card and that's going to be fine, the really good single citi is that you can product change between cards freely, so you can product change from the Hilton card, set a double cash card as long as it can meet the credit limit requirements, and it's not going to be a problem if you get a targeted offer, that you can sometimes get around the two-year rule, but it wouldn't rely on it too much.

So my recommendation will be to apply for the no annual fee card first, and then afterwards apply for the one with annual fee, if it has an example, we would apply for the one of no annual fee right now in 2018, and then in 2019 we would be eligible for the one with an annual fee to get that bonus again, so here we're getting two bonuses in the span of two years. If you did it the other way around to the one of annual fee first, then it could still work, but the main problem here is that you're going to have to keep that card for two years, and not do a product change or cancellation. Maybe we did do a product change after the first year, then it's going to take you three years to get the same two bonuses, this means that you're taking 50% longer, so three years and Center tutors, so to me it's just not the optimal strategy, even how downgrades worked, it's also kind of affects whether used to apply for certain cards.

The Costco card is a double cash card or very good examples, so here it doesn't make sense to apply for them, because there really is no sign up offer to be. There's a cost to one sometimes does have a sign-up offer, but typically see there a chicken, a pie, a case of water or a bucket, so there is a sign-up offer but for me, it's not material enough for me to count it. For example, if you want to get the double cash card and you were willing to wait at least a year for it, the optimal strategy would be to apply for the American Airlines platinum select card, so there is no annual fee in the first year, because it's waived, and afterwards in year two and infinity there is an annual fee, we're not worried about that because we're going to product change it after the first year, this means that you're going to get a sign up offer, that's really great, and then you're not really paying any annual fees in your year 1, and you're onwards and also you get the card that you wanted in a long term, the double cash card will cover optimal product range strategies, but for now I think this helps you enough to understand one you should apply for, and how you should think about this.