So you want to apply for some credit cards. And you’re wondering how often can I apply for a credit card? How often is too often, and can I overdo it? In this article, I go over how often to apply for new cards. And when not to. And in addition how it can affect your credit
The short answer:
Applying for to many credit cards can raise a red flag. One credit card every 3-4 months is recommended. However, if you do apply for 2 cards at once it won’t ruin your credit. That being said it’s not recommended.
Every time you make a new application for a credit card a hard inquiry is recorded. This just means a credit card company requests your credit report for the purpose of issuing you a credit card. Your credit score will generally go down by 3-10 points with each new application. Consequently, too many inquiries can hurt your credit.
A hard inquiry is recorded for any application for credit. For example a car loan. Or a mortgage. Therefore you need to keep this in mind when considering applying for any credit.
OK so now the good news:
The good news is that handled correctly you can increase your credit score. Getting a new credit card will probably cause your credit score to go down a little.
However, your balance to available credit ratio will be improved. How much debt you carry compared to your available credit is a factor in determining your credit score.
For example, you have a credit card with a $5,000 limit. And you have a $3,000 balance on it. This amounts to a 60% usage or ratio. If you apply for and receive a new card. And let’s say it has an available limit of $5,000.
This would amount to a combined available credit limit of $10,000. Therefore your new ratio would be 30%. Now assuming you don’t run the balance up on your new card you should see an improvement in your credit score. Not right away, but after a while.
Your credit ratio is not the biggest factor in determining your credit score. However, it does come into play. Keeping it low is a good idea.
OK so back to the question how often can I apply for a credit card?
There are some other factors to consider. How good is your credit? If you have a score of 770, then a drop in your score of 6 is not that significant.
However, if you have a score of 660 a drop of 6 can hurt a little. So when asking the question how often can I apply for a credit card. Take into consideration your own situation.
Check out this chart. If you are on the borderline for dropping down to a less desirable bracket you need to be careful. That is to say, fewer applications would be advised.
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You need to check your credit score before any large application for credit. If you feel your credit isn’t good enough to apply for a top rated card, then apply for a card that’s easier to get. If you’re turned down for a card this will make it harder for future applications.
What if You want to apply for several cards at once?
As mentioned before this is not suggested. However, if you need to apply for more than one card at a time for whatever reason. It’s best that you do it all the same day. This way hopefully your activity won’t show up on each check of your credit. In addition, don’t apply to cards from the same bank.
Sometimes you run across a card that you just can’t pass up. Yes, you can go ahead and apply for it. Just keep in mind, it will affect your credit score. Be prepared to see a drop in your score. However just make your payments on time don’t run up your balance. And your score should go back up in just a little while.
Ultimately this is your choice:
As stated previously your credit score will make a difference. If your score is high, you can apply more often. If your score is a little lower, say in the mid-range. You may want to apply a little less often.
This is where keeping track of your credit score can help. Check your score before you apply for a couple of cards. And then check your score afterward. Then you will know exactly where you stand. Once your score rebounds you can then apply for more credit.
Think ahead: If you’re planning on buying a new car or applying for a mortgage make sure not to apply for credit cards for 4-6 months prior to a major purchase. You don’t want a temporary drop in your credit score to hurt your chances on getting a new house.
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To sum it up:
Keep your credit score in mind when considering applying for a new card.
Be aware that with each new application of credit your score will probably go down.
It’s a good idea to check your credit score before and after each new application.
Be careful not to run up your balance on a new card.
In addition you should wait 3-4 months in between new applications for credit
Be patient, make all payments on time and your score will rebound.
OK so hopefully this helps with your question. How often can I apply for a credit card.
Check out this other article “How Much Of My Credit Card Should I Pay Off” In this
Check out this accompanying video “How Often Can I Apply For A Credit Card”
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