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If you are wondering how often you can apply for a credit card, the right frequency will vary based on the person, their credit score, and the card issuer’s restrictions. While there’s no single right answer, waiting about six months between applications is one rule of thumb.
However, there are some exceptions. Read on to learn the ins and outs of how often you can apply for a credit card.
Key Points
• Waiting approximately six months between credit card applications is generally recommended to minimize negative impacts on credit scores and improve approval chances.
• Hard credit inquiries from applications temporarily lower credit scores by several points and remain on credit reports for up to two years.
• Opening new credit accounts lowers the average age of accounts, which can negatively affect credit scores, particularly for individuals with limited credit history.
• New credit lines typically increase total credit limits and decrease credit utilization ratios, potentially offering a positive impact on credit scores over time.
• Applying for multiple cards simultaneously triggers numerous hard inquiries and may lead to rejections due to specific issuer rules regarding application frequency.
How Applying for a Credit Card Affects Your Credit Score
If you want to apply for a new credit card, you may be concerned about how applying for credit cards impacts your credit score. Applying for a credit card can affect your credit score in a few ways, including credit utilization, new credit inquiries, the average age of your accounts, and your credit mix. Here’s a closer look.
New Credit Inquiry
There are two types of credit inquiries: hard vs soft credit inquiries. During a soft inquiry, which is also called a soft pull or a soft credit check, a credit card issuer will check your credit, but it won’t affect your credit score.
However, when you apply for a new credit card, the credit card issuer will probably do a hard credit check. Hard credit inquiries can negatively impact your credit score. Every hard inquiry can temporarily drop your credit score by several points. Hard inquiries remain on your credit report for up to two years but they typically only impact your score for a few months.
Credit Utilization
Credit utilization is the amount of revolving credit you are currently using divided by the total credit available to you, and it’s usually expressed as a percentage. Credit utilization can affect your credit score. When you open a new line of credit, like a new credit card, your total credit limit generally increases, and your credit utilization ratio decreases. This can positively impact your credit score. Financial professionals recommend keeping your credit utilization below 30%.
Average Age of Accounts
The higher the average age of your accounts on your credit report, the higher your credit score will likely be for that category.
When you open a new account, it will reduce the average age of your accounts. If you have established credit with multiple accounts that are several years old, a new account opening may not have a significant impact. But if all of your accounts are new, adding additional new accounts may have a greater negative impact.
Credit Mix
Lenders like to see that borrowers have a variety of different types of credit because it shows that they can handle different types of payments. The impact of a new credit card on your credit mix will depend on your current mix. If you already have several credit cards, it may not impact your credit score much. If you don’t have any other existing credit cards, opening up a new credit card could improve your credit mix and therefore might positively impact your credit score.
Recommended: How Many Credit Cards Should I Have?
How Often Should You Apply for a Credit Card?
While there is no hard and fast rule about how often to apply for a credit card, one rule of thumb is to wait at least six months between credit card applications.
• Those with poor credit may need to wait even longer between applications to maximize their chances of getting approved for a new credit card.
• Those with excellent credit can probably apply for a new card more often.
Why You Should Wait Before Applying
Here are some reasons why you should think twice and delay before applying for a new credit card:
• If you don’t know how to use a credit card responsibly, you may want to consider waiting before applying.
Worth noting: If you have bad credit from a maxed out credit card, you may want to work on building your credit first. Some tips:
• If your credit utilization ratio is high because you don’t have a high credit limit, you could try implementing the 15/3 credit card payment method. The 15/3 credit card payment method is when you make two payments each statement period instead of one. You pay half of your credit card statement balance 15 days before the due date on your statement, and then make another payment three days before the due date. This additional payment can help lower your credit utilization ratio throughout the month, which can also help positively impact your credit score.
• Other reasons you may want to wait before applying for a credit card include if you’re buying or refinancing a home currently, since applying for a new credit card can result in a higher mortgage interest rate or potentially being declined from the mortgage altogether.
• You should also evaluate the credit card benefits and welcome offer to make sure it is the right fit for you and the best offer that you can get. Credit card sign-up bonuses fluctuate throughout the year. Before applying for a credit card, you should do some research to see what the highest offer has been. If the current offer is significantly lower, consider waiting to apply for that card.
How Many Credit Cards Can You Apply for at One Time
Technically, you can apply for as many credit cards at once as you want. However, you likely won’t get approved for all of them. And you could trigger a slew of hard credit inquiries. Putting in multiple applications likely won’t be worth the negative impact on your credit score.
Credit Card Issuer Restrictions
How many credit cards you can apply for at one time will vary based on the credit card issuer. Each card issuer has its own rules and restrictions about applications. American Express, Bank of America, Capital One, Chase, Citibank, Discover, U.S. Bank and Wells Fargo all have their own issuer restrictions regarding applications, cards and welcome offers.
Credit Card Tips
Once you have been approved for an additional credit card, you need to know how to manage multiple credit cards. That includes:
• Understanding your obligations. There are several credit card rules to know so that you maintain your credit score, while taking advantage of the credit card benefits. One of the more important ones is to consistently pay at least the minimum amount due on time.
• Knowing the expiration date. When you are issued your credit card, it will have an expiration date. The credit card expiration date is usually three to five years after being issued. You can find the expiration date on the credit card itself. After the card expires, the issuer will usually give you a new card, as long as your account is still active.
• Using your credit card. What happens if you don’t use your credit card is that the issuer may close your account. So make sure you use the card at least occasionally.
• Being responsible. Using your credit card responsibly means keeping an eye on your credit limit, your credit utilization ratio, and when your payments are due. Learn more about using credit cards by exploring this credit card guide.
The Takeaway
How often you should apply for a credit card will depend on a variety of factors, like your credit history, the card issuer, the current offers available, and more. It can be wise to not apply for new credit cards more often than every six months. And once you have a new credit card, make sure to use it responsibly.
Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.
FAQ
How long should I wait to apply for another credit card after being approved?
One rule of thumb is to wait at least six months between credit card applications. However, there is no hard and fast rule about how often to apply for a credit card. It will vary depending on your credit score and the restrictions from the card issuer.
Do I have to wait six months to apply for another credit card?
Waiting six months between credit card applications is not a defined requirement. If you have poor credit, you may need to wait longer than six months between applications to maximize your chances of getting approved for a new credit card. If you have excellent credit, you could probably apply for a new card more often.
How often can I apply for a credit card without hurting my credit?
Each credit card application results in a hard inquiry, which lowers your credit score by several points temporarily. Keep that fact in mind as you consider applying.
Photo credit: iStock/Eva-Katalin
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