Here’s a situation you might have experienced: You find yourself wishing to apply for two credit cards at the same time. There are cards that are more appealing than others due to their bonus features or ability to help establish credit. You’re tempted to apply for both credit cards at the same time, but you’re unsure of how frequently you can do so.
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- Having more than one credit card is a good idea, but applying for several cards at once could lower your credit score.
- Applying for too many credit cards in a short amount of time could make issuers view you as a risky borrower.
- Although there are no limits on the number of cards you can own or the amount of time you have between applications, each card issuer has specific guidelines.
Selecting the ideal credit card for your needs is one of the best ways to maximize its benefits.
Perhaps you would like to apply for a new credit card so you can get cash back on regular expenses like groceries. Alternatively, you might want to use a sign-up bonus to earn a free flight, or you might want to transfer and settle an outstanding debt.
Naturally, it’s unlikely that you’ll be able to fulfill all of your credit card fantasies with just one card. You probably should apply for multiple credit card offers as your spending patterns and financial requirements change.
But be advised that applying for many credit cards at once is usually not a good idea. Waiting between credit card applications generally improves your credit score and may increase your chances of being approved.
What you should know about when applying for a new credit card is as follows.
How often should you apply for a new credit card?
With a few exceptions, the best time to apply for a new credit card is when it makes financial sense for you.
For example, if your new job requires you to travel more frequently and you currently have a cash back card, you might want to add a travel rewards card to make the most of those trips. Alternatively, you may have previously taken on debt that is rapidly accruing high interest; in this case, a new card with an excellent balance transfer offer could assist you in getting back on track.
It makes sense, of course, to be aware of the warning signals of having too many credit cards. If you’re having trouble making your monthly payments or if the annual fees are taking up too much of your income, you might want to think twice before getting as many credit cards as you do.
Additionally, it’s a good idea to wait 90 days or longer between credit card applications; six months is even better. Waiting between credit card applications helps prevent you from breaking any credit application restrictions and shields your credit score from the damaging effects of too many credit inquiries.
Why you should wait between credit card applications
There are two main justifications for delaying credit card applications. First, the amount of “new credit” you have accounts for 10% of your FICO credit score.
A credit inquiry, commonly known as a hard credit check or hard pull, is made on your credit report by the lender when you apply for a credit card. After every credit check, your credit score usually decreases, but it should rise rather quickly. If your account has an excessive number of recent credit inquiries, your credit score may suffer more severely. For one reason: lenders interpret a high volume of recent credit inquiries as an indication that you may be considering taking on a large amount of debt.
Credit card application restrictions are another reason to hold off on applying for new credit. Certain credit card issuers will automatically reject your application if you have opened a predetermined number of credit cards in a predetermined amount of time.
Credit card issuer restrictions
There are limitations on how frequently you can be approved for new credit cards, even though the majority of credit issuers don’t formally acknowledge them. The rules are frequently discovered by customers and card enthusiasts via personal experience.
When a credit card issuer is more likely to reject your application, social media users and credit card websites like The Points Guy use firsthand reports about acceptances and rejections to determine when you should apply for new credit. Like Bankrate, The Points Guy is owned by Red Ventures.
The Points Guy has compiled the following information regarding limitations for various issuers.
American Express application restrictions
Previously known as charge cards, American Express restricts cardholders to a maximum of five credit cards and ten Amex cards with no fixed spending limit. Additionally, it is reported that American Express restricts cardholders to applying for no more than two cards in a 90-day period.
Bank of America application restrictions
Cardholder reports state that Bank of America follows the 2/3/4 rule, which states that you can only be approved for two new cards in a 30-day window, three cards in a 12-month window, and four cards in a 24-month window.
However, this restriction only applies to Bank of America® credit cards; if you have obtained four credit cards from other issuers in the previous year, you are still eligible to apply for a new Bank of America credit card.
Capital One application restrictions
According to reports, Capital One only allows customers to apply for one new credit card every six months. Additionally, co-branded Capital One cards and Capital One business credit cards are exempt from this limit, so you can only have two Capital One personal credit cards open at any given time.
The most well-known credit card application restriction is likely Chase’s 5/24 rule. Chase typically won’t approve you for a new credit card if you have opened five or more credit cards in the previous 24 months, regardless of whether they are Chase or credit cards from other issuers.
The 5/24 rule was implemented to stop credit card churning and make sure that people who are solely interested in obtaining a lucrative sign-up bonus are less likely to obtain Chase’s best travel credit cards.
You are only permitted to apply for one new Citi credit card every eight days, and you are not permitted to apply for more than two Citi credit cards in a 65-day period. Additionally, you are only permitted to apply for one Citi business credit card every ninety days.
According to reports, Discover restricts its credit cardholders to a maximum of two Discover cards at any given time and only one new card each year.
Wells Fargo application restrictions
Many Wells Fargo credit card terms and conditions state that if you have opened a Wells Fargo card within the last six months, you might not be eligible for a new Wells Fargo card. You might only be able to open a certain number of card accounts with Wells Fargo.
Your credit card application may occasionally be rejected for no other reason than unfortunate timing. For the best chance of approval, if your credit score is high enough for the cards you want, wait to apply until you are free of any issuer restrictions.
While it may seem annoying to wait weeks or months between credit card applications, it’s preferable to being turned down and losing credit score points as a result of the hard inquiry, then having to start the application process over later.
FAQ
How long should I wait to apply for another credit card after being approved?
If you’re having trouble making your regular payments or if the annual fees are taking up too much of your income, you might want to think twice before getting as many credit cards as you do. Additionally, it’s a good idea to wait 90 days or longer between credit card applications; six months is even better.
Can I apply for 2 credit cards in a week?
In a given week, you are able to apply for two credit cards. Customers are able to apply for an unlimited number of credit cards. The quantity of credit cards you can obtain in a given period of time may be governed by regulations set by a credit card issuer. Prior to applying for two credit cards from the same company, familiarize yourself with its policies.
What is the 5 24 rule?
Although many credit card issuers have requirements, Chase may have the tightest ones. According to Chase’s 5/24 rule, if you have opened five or more personal credit cards in the last 24 months (from any card issuer), you will not be eligible for the majority of Chase cards.
How often is it safe to apply for a new credit card?
Although there isn’t a set amount of time that has to pass between credit card applications, it is true that applying too frequently too soon can cause credit card issuers to become suspicious and may result in your application being denied. Waiting at least six months between applications is a good rule of thumb.
Read More :
https://www.bankrate.com/finance/credit-cards/how-long-to-wait-between-applications/
https://money.usnews.com/credit-cards/articles/how-often-should-you-apply-for-a-credit-card