How often should you apply for a credit card?
When it comes to how often you should apply for a card, there’s no one-size-fits-all answer. But there are some considerations that can help you figure out what’s best for your situation.
What you’ll learn:
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Credit card issuers have their own rules about applications and accounts.
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A new credit card application typically triggers a hard inquiry, which may temporarily lower your credit scores by a few points.
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Many hard inquiries in a short time may have a more significant impact on your scores.
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Checking for pre-approved card offers before applying for a new credit card may help you narrow down your options and apply more strategically.
How often should you get a new credit card?
The Consumer Financial Protection Bureau (CFPB) recommends only applying for the credit you need. But the right number of credit cards might be different for everyone. It all depends on your circumstances.
How often can you apply for a new credit card?
Credit card issuers may have their own rules and limits as to how often you can open a new account. Here are a few examples:
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The 5/24 rule: For some issuers, applicants can’t open more than five new credit card accounts in a 24-month period.
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The 2/3/4 rule: According to this rule, applicants are limited to two new cards in a 30-day period, three new cards in a 12-month period and four new cards in a 24-month period.
- The six-month or one-year rule: Some issuers may only let borrowers open a new credit card account once every six months or once a year.
Does opening a new credit card affect your scores?
Opening a new credit card may affect your credit scores. It can change things like your credit utilization ratio and credit age, which are factors that determine credit scores. Credit card applications can also result in a hard inquiry, where a lender asks to review your credit file.
The CFPB says that a single hard inquiry generally has a small impact on your credit scores. But multiple hard inquiries in a short time could have a more negative impact on your credit scores. As the CFPB explains, “If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively.”
Keep in mind that credit scores are complex. Different credit-scoring companies, like FICO® and VantageScore®, have their own models for calculating credit scores, so it can be hard to predict exactly how your financial decisions might affect your scores. If you’re not sure of the next best step for your financial health, you may consider using a credit score simulator to get an idea of how a new application or account may impact your credit score.
What to consider before applying for a new credit card
Here are some things you might consider doing before you apply for a credit card.
See whether you’re pre-approved
Some credit card issuers let you check for pre-approved card offers before you apply. Getting pre-approved can help give you an idea which cards you may be eligible for without triggering a hard inquiry.
Capital One’s pre-approval process is quick. And it requires only some basic information, such as your legal name, address, Social Security number (SSN), employment status and income. Plus, getting pre-approved won’t hurt your credit scores.
Think about timing
The CFPB says you might want to avoid applying for a credit card during or right before applying for a mortgage to avoid multiple hard inquiries in a short period. When you apply for any kind of loan, the lender will likely look at your credit reports and scores as part of determining whether to approve your application and what interest rate to offer you.
Review your current credit card debt
If you’re struggling to manage high-interest credit card debt, you may be considering consolidating your credit card debt. One way to consolidate credit card debt is with a balance transfer to a new issuer.
A balance transfer can help you combine multiple credit card payments into a single monthly payment. Some credit cards even offer low or 0% introductory rates. Just keep in mind that the introductory rate only lasts for a limited time. And depending on the issuer, you might have to pay a balance transfer fee.
Keep in mind, too, that debt consolidation won’t erase your debt. And a balance transfer is just one option. Working with a credit counselor may help you figure out the best way to manage your debt.
Monitor your credit
It’s a good idea to know where your credit stands, whether you’re thinking about applying for a new card or not. One way to monitor your credit is with CreditWise from Capital One.
CreditWise gives you free access to your credit report and scores anytime, without hurting your scores. CreditWise is free and available to everyone, even if you don’t have a Capital One account.
You can also get free copies of your credit reports from all three major credit bureaus by visiting AnnualCreditReport.com.
Compare cards
The CFPB recommends comparing cards before you apply so you can find the right one for you. You might consider researching:
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Annual percentage rates (APRs)
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Annual fees
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Rewards programs
Make sure to take your needs and spending habits into account too. This can be especially helpful when comparing rewards credit cards. If you want a simple way to earn money on everyday purchases, for example, you may want to look into a cash back rewards card like the Capital One Quicksilver card. If you’re a frequent traveler, a travel rewards credit card like the Capital One Venture Rewards card may be a good fit.
How often to apply for a credit card FAQ
Here are the answers to a few frequently asked questions about applying for new credit cards.
How many credit cards can I apply for at once?
There’s no set number of credit cards you can apply for at once. But every credit card application you make can result in a separate hard inquiry.
According to FICO, a single hard inquiry will have only a small impact. But having multiple inquiries on your credit report, especially within a short period of time, may have a bigger impact, the CFPB says.
Plus, as the CFPB explains, “if you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively. That’s why the agency recommends applying only for the credit you need.”
How long should I wait between credit card applications?
No one’s going to make you wait a set time between credit card applications. But companies like Experian and Bankrate suggest waiting six months.
One benefit of waiting between applications is that it could help protect your credit scores from the negative effects of multiple hard inquiries. However, don’t forget other factors. Your payment history and your credit utilization ratio can still affect your credit scores in the time between applications.
When should I get a credit card?
Deciding whether to get a credit card is your decision. Everyone’s situation is different, and there isn’t a single right time to get a credit card that works for everyone.
Opening your first credit card can be part of building or establishing your credit history. And using a credit card responsibly may help you improve your credit scores over time. But before you apply, make sure to think through things like how you plan to use the credit card and whether you can manage monthly payments.
Key takeaways: How often you should apply for a credit card
How often you should apply for a credit card depends on your specific circumstances. Experts recommend applying only for the credit you need. But everyone’s financial situation is different.
If you want to explore card options before you apply, compare Capital One credit cards to learn about different cards and find one that’s right for you.
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