Can I Get Initial Perks Again After Canceling a Credit Card?
Many people wonder if they can cancel a credit card and immediately apply for the same card to receive the initial perks all over again. Unfortunately, this strategy often backfires, and credit card issuers have strict policies in place to prevent such practices.
Understanding the Rules
When you cancel a credit card, the bank keeps a detailed record of your previous account. This means that even if you reapply for the same card, you may not receive the initial perks again. This is because the credit card companies generally restrict introductory offers to a single application per customer for their lifetime.
For instance, a credit card that offers an initial sign-up bonus may clearly state in its cardholder agreement that such bonuses are limited to one application per person. Therefore, if you apply for the same card a second time, the credit card company will likely deny your request based on this policy.
The Reapplication Window
There is usually a waiting period between cancellation and reapplication. Depending on the card issuer, this gap can range from several months to a longer duration. Some credit card companies might deny your application for up to a year. It's essential to review the specific terms and conditions of your card to get a clearer understanding of the reapplication policy.
For example, some cards might require a six-month gap between cancellation and reapplication. However, some card issuers can recognize you as an existing customer regardless of the time elapsed, except in rare cases where you have changed your address or name significantly.
Potential Consequences of Reapplication
Even if you manage to cancel a card and reapply quickly, the credit card issuer might take adverse actions against you. They may simply deny your new application, or they might go as far as closing all your existing accounts, resulting in a significant ban that can last for a long time.
American Express takes this issue very seriously. If you attempt to reapply multiple times, they might close all your accounts, leading to a strict ban that can severely impact your credit standing. While some issuers might allow you to open a new account, they will not usually grant you the sign-up bonus a second time.
Essentially, attempting to take advantage of initial perks after canceling a credit card is highly risky. You run the risk of being denied future applications, which could harm your financial standing.
Conclusion
While it's tempting to think you can game the system by canceling and then reapplying for a credit card to get the benefits again, it's important to understand the policies and potential consequences. Credit card issuers are quick to recognize such manipulative behavior and will take action to prevent it.