How Often Should You Apply For a Credit Card?

Having a credit card can give your spending power a boost and contribute towards a healthy financial life. But that doesn’t mean you should start applying for every credit card you see. Trying to bite off too much at once can have some unintended consequences that are pretty hard to swallow.

Key Takeaways

Applying for too many credit cards in a short period of time can prevent you from being approved, so it’s best to space out your requests.

• Submitting multiple applications close together may flag you as desperate for credit.
• This typically leads to being denied and can negatively impact your credit score.
• Waiting three to six months between applications is a good general guideline.

How Often Can You Apply for a New Credit Card?

There’s no hard and fast rule for how often you can apply for a new credit card. This is a personal decision that depends on your financial situation, your credit score, your level of risk aversion, and your need for new credit. And nobody will be knocking on your door or trying to cart you off in handcuffs if you apply for a bunch of cards.

As for how often you should do it, it’s best to space out your credit card applications. Waiting at least six months is the standard rule of thumb, and a minimum of three months if you have good credit.

Why Should You Wait Between Applying?

Two undesirable things can happen if you don’t wait a reasonable amount of time between credit card applications.

1. Increased rejection: You will likely get denied because creditors will assume that you’re desperate for credit approval, which they interpret as risky behavior. Their conclusion is usually that if you need more credit, right now, you’re more likely to max out your cards and neglect to pay.
2. Lower credit score: You could impact your credit score by triggering too many hard inquiries. One hard pull will typically lower your score by 10 points or less, but repeating the process causes those points to add up. And each of those inquiries can stay in your credit reports for up to two years.

How Many Credit Cards Can You Apply for at Once?

Well, technically you’re only ever applying for one card at a time. But if you’re wondering about applying for multiple cards in rapid succession, it’s best not to do it. Apply for one card, and then once some time has passed — like several months — you can apply for another one. Again, there’s nothing written in stone, but choosing to ignore standard conventions can backfire.

Credit issuers also typically have their own restrictions on how many of their credit cards you can apply for within a certain time frame. Some even have rules about how many cards you can be approved for from any bank within their set time frame.  For example, the 5/24 Rule says you’ll be denied if you have opened five or more cards from any issuer within the previous 24 months.

If you feel the need to have more cards, you could choose to see if you pre-qualify before pulling the trigger. Pre-qualification does not affect your credit score, and lets you take a sneak peek at your chances of approval. Finding out that you’re pre-qualified or pre-approved for a card doesn’t guarantee you’ll get it, but it’s usually a pretty good indication.

Does Opening a New Credit Card Affect Your Credit Score?

Yes. Opening a new credit card can affect your credit score in both positive and negative ways.

• Positive impact: If you open a new credit card, your credit utilization ratio should go down. As long as you don’t max out that card, and you keep your utilization under the recommended 30%, this could increase your credit score. Establishing a pattern of positive payment history with your new card can also give your score a boost.
• Negative impact: Each time you apply for a credit card, you trigger a hard inquiry, which could lower your credit score slightly. But after the application step, this new card shouldn’t negatively affect your credit score any further, unless you charge too much or make late payments.

Bottom Line

How many credit cards you choose to apply for — and how often — is ultimately up to you. After all, it’s your financial life. But if you decide to apply for multiple cards within a short period of time, it’s important to be aware of the possible repercussions. It could affect both your credit score and your chances of being approved.

If you can wait some time in between applications, you’ll be better able to minimize any potential negative impact. And when it’s time to apply for your next card, be sure to see if you pre-qualify first, which gives you a good idea of your approval chances without affecting your credit score.