Want to collect more credit card points for cash back or travel? A credit card signup bonus is away to earn them. Having multiple credit cards also means higher total available credit, which gives you greater flexibility to make the charges you need on the card.
If you’re wondering, “How often can I apply for a credit card?” There’s no hard and fast rule. According to Forbes, experts suggest that waiting 90 days as a rule of thumb. The amount of time needed between your credit card applications depends on several factors, like credit score, risk tolerance and each bank’s application rules Read on to learn about the factors to consider before applying for a new credit card, and explore credit and debit card options tailored to your needs.
MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.
Understanding how often you can apply for credit cards
There’s no rule for the “right” number of credit cards you should apply for within a specified time frame. Each time you apply for a credit card, the issuing bank will perform a hard credit check, which involves pulling your credit score and history data. That hard pull shows up as a portion of your credit report. Too many hard pulls within a short time can hurt your credit score.
However, whether “too many” means two within three or six months can vary depending on the consumer and the issuing bank. That’s why there’s no set rule for how long you must wait between credit card applications.
When you apply for a credit card, banks evaluate your risk as a borrower when issuing you credit cards and setting card limits. The lower the overall risk the bank sees in your application, the better your chances of approval.
Some banks have their own limits. Capital One, for example, has a strict rule that you cannot have more than two of its cards, and you will only be approved for a new credit card every six months.
Chase is perhaps the most well-known example you should be aware of. It has what is called the 5/24 rule. You will be rejected for all or most Chase credit cards if you have opened more than five credit cards across all issuers within the past 24 months (thus 5/24). There’s no official statement from Chase on which credit cards are subject to this rule, but it appears to apply to most or all of them.
Reasons why you should wait before applying for credit cards
Regardless of bank policies, there are financial reasons to wait before applying for credit cards. Look at this checklist before deciding to proceed with credit card applications.
Evaluate your financial situation
Before applying for any line of credit, look at your total financial picture. Have you already built a strong credit score? Do you know how to use a credit card responsibly? Does the new credit card fit into your lifestyle or financial goals? Reasons not to open a credit card right away include needing to improve your credit score first or wanting to limit the temptation to make extra expenses on the card. Learn more about how to manage credit and prepare to apply for a credit card.
Build a solid credit history first
If you have a low or no credit score, you might not be approved for a credit card. In that case, you can start building your credit history with a secured credit card, credit-building loan, or rent-reporting company, or consider MoneyLion’s Credit Builder Plus Membership* and find more tips to build your credit score in three months.
Considering a way to build your credit? MoneyLion can help. Check out free and convenient ways to find offers from our trusted partners to help you improve your credit. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards.
Research and compare different credit card options
Research and comparison take time. If you only plan to apply for a maximum of one new credit card every three months, you may want to wait until you’ve considered the best current credit card offers and options that fit your lifestyle. Take your time, as new credit card offers are regularly available, so if you miss one offer, like an extra signup bonus, others will come around again.
Understand the terms and conditions
If you don’t understand how credit cards work or are unclear about your credit card’s terms of service, such as APR, annual fees, late fees, or other policies, it can be worthwhile to read through and discuss them before proceeding with the application.
While this is something many people don’t do unless you plan to pay off the credit card in full each month, those APRs and fees can add up, so you should know what you’re signing up for.
Why should you wait between credit card applications?
Reasons you should wait between credit card applications come down to the effect on your credit score and any individual application restrictions. The first critical reason to wait on applying for credit card applications is that 10% of your FICO credit score is determined by the new credit you have obtained. The second one is about credit card application restrictions.
When you apply for a new credit card, the card issuer will do a hard credit check. Every time there’s a hard inquiry, your credit score drops. Some suggest that it drops by up to five points, but the effect on your credit score could vary. A hard inquiry will stay on your credit report for up to two years but typically impacts your score for 12 months. If you apply for too many credit cards in a short period of time, the impact on your credit score could be amplified.
In addition, credit card issuers have their own rules or limitations. In addition to Chase’s infamous 5/24 rule and Capital One’s two-card limit, other issuers have their own limits. They may limit whether you’re eligible for a welcome bonus or have loosely enforced rules like a 6/24 rule, which is similar to Chase’s. However, these primarily affect travel-hacking consumers or those using another strategy to maximize credit card signup bonuses.
How many credit cards can you apply for at once?
You can apply for more than one credit card at once, although you may only be accepted for one card at a time per card issuer. According to Experian, one of the three major credit bureaus, there is no limit on how many credit cards you can apply for in a day, but for the reasons mentioned above, it’s not necessarily a good idea.
Do you need more credit cards?
Applying for an extra credit card can give you greater financial flexibility, a higher credit limit, and—with responsible use—contribute to a strong credit score long-term. Whether you need another credit card right now comes down to how many cards you’ve applied for in the last six to 24 months, your financial goals, your existing credit cards, and your credit score.
You’ll also want to consider other financial goals, such as plans to apply for a mortgage, before applying for any new lines of credit. If you need help building credit fast, check out MoneyLion’s tips for fast credit repair.
FAQ
How long does it take to apply for a credit card?
It only takes a few minutes to fill out a credit card application online. You could be approved in as little as 60 seconds. However, if the card issuer needs additional time to review the application, you will typically get a letter in the mail with the final decision, which can take up to 30 days.
Is it bad to apply for multiple credit cards?
No, it’s not “bad” to apply for multiple credit cards, but it’s not usually the best strategy to build your credit score. If you already have an excellent credit history, applying for two credit cards at once, for example, is unlikely to significantly harm your credit score. However, for most people, applying for multiple credit cards quickly isn’t necessary.
How often can I apply for a credit card without hurting my credit?
There’s no expert consensus on how often you can apply for a credit card without hurting your score, although most experts agree waiting longer is better. Suggestions range from 90 days to six months for the optimal minimum time between credit card applications.
