How often should you apply for a credit card?

Opening a credit card is a personal decision. And when it comes to how often you should apply for a new card, there’s no one-size-fits-all answer.

Learning about how credit applications could affect your credit scores and what to think about before applying for a new card may help you figure out what’s right for you. 

What you'll learn:

• Credit card issuers have their own rules about applications and accounts.

• A new credit card application typically triggers a hard inquiry, which may temporarily lower your credit scores by a few points. 

• Many hard inquiries in a short time may have a more significant impact on your scores. 

• Checking for pre-approved card offers before applying for a new credit card may help you narrow down your options and apply more strategically.

The Consumer Financial Protection Bureau (CFPB) recommends only applying for the credit you need.

Remember, the right number of credit cards might be different for everyone. These recommendations are general guidance that may help inform your decision. It all depends on your circumstances.

Credit card issuers may have their own rules and limits as to how often you can apply for new credit or open a new account. Here are a few examples: 

• The 5/24 rule: For some issuers, applicants can’t open more than five new credit card accounts in a 24-month period. 

• 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.

Opening a new credit card may affect your credit score. A new credit card can change things like your credit utilization ratio and credit age. Credit card applications can also result in a hard inquiry, where a lender requests 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.

Some credit card issuers let you check for pre-approved card offers before you apply. Getting pre-approved can help give you a better idea of what cards you may be eligible for without triggering a hard inquiry. 

With Capital One’s pre-approval tool, you can find out if you’re pre-approved for card offers before you apply. Pre-approval is quick and only requires some basic information, like your legal name, address, Social Security number (SSN), employment status and income. Plus, getting pre-approved won’t hurt your credit scores.

Besides pre-approval, here are some things you might consider doing before applying for a credit card:

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. 

Each credit card application might result in a separate hard inquiry, which can impact your credit scores. So you might want to avoid that potential impact on your credit scores while you’re applying for another loan.

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. 

It’s also important to know 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.

The CFPB recommends comparing cards before you apply so you can find the right one for you. You might consider researching:

• Annual percentage rates (APR) 

• Annual fees 

• 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.

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 TransUnion® credit report and VantageScore 3.0 credit score anytime, without hurting your score. 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.

Here are the answers to a few frequently asked questions to help you better understand how often to apply for a new 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.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Explore Capital One travel rewards cards and get rewarded for the way you travel with unlimited miles.

• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use. 

• Earn unlimited 3% cash back at grocery stores and restaurants with Savor.