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I think most people have someone in their lives with, literally, dozens of credit cards in their wallet. I know for me, the second question I had for them — after “Why?” — was, “How long did that take?”
Truth is, there’s no hard-and-fast rule for how often to get a new credit card. Spacing out applications by at least six months is a reasonable rule of thumb for most people. Apply more frequently than that, and you start risking 1) a dip in your credit score and 2) potential denials from issuers.
That said, the real answer depends on your situation. Someone building credit from scratch has different constraints than someone optimizing a rewards strategy. Here’s what to know before you apply for your next card.
How new applications affect your credit score
Every time you apply for a credit card, the issuer pulls what’s called a “hard inquiry” on your credit report. Hard inquiries, or “new credit” make up 10% of your FICO® Score — and while a single application might only cause a minor dip, multiple hard inquiries in a short period can have a bigger impact.
Hard inquiries can stay on your report for up to two years, but they’ll only affect your score for a year. For this reason, I usually get a new card no more than once or twice a year, so my score’s never getting dragged down too much.
Also keep in mind that adding multiple cards in a short period will lower your average account age and hurt your “length of credit history,” which makes up 15% of your FICO® Score. Lenders like to see both stability and responsibility, and applying for cards willy-nilly isn’t a great indicator of either.
On the flip side, opening a new credit card increases your total available credit, which can lower your utilization ratio and actually help your credit score. That’s assuming you don’t run up a big balance on the new card.
So a new application isn’t automatically a bad thing for your score. It just depends on your credit profile and what you’re doing with the card.
Issuer application rules you need to know
Beyond your credit score, some issuers enforce their own application limits. Violating them can get you declined no matter how good your score is.
Probably the most well-known example is Chase’s 5/24 rule. It states that Chase will not approve you for a new card if you’ve opened five or more personal credit cards from any issuer in the past 24 months.
For this reason, I generally tell people that if they plan on landing tons of credit cards, start with Chase. That way, you won’t get automatically denied for a Chase card you really want down the road.
Want to get started today? Check out our list of the best Chase cards available now and find the one that’s right for your wallet.
How long should you actually wait between applications?
Waiting at least 90 days between applications is a reasonable starting point — and again, waiting six months or more is an easy way to protect your score and keep your approval odds high.
If you’re actively working to build credit, I’d lean toward the longer end. Avoiding hard inquiries is an easy way to improve your score over time, along with on-time payments and a low credit utilization ratio.
There are a few situations where applying more frequently is reasonable. If you’re eyeing a massive, limited-time welcome bonus, the rewards might be worth the hit to your score. If you’re in serious debt, or have a big purchase coming up, a 0% intro APR card can save you hundreds or thousands in interest.
Other than that, though, it’s probably worth waiting.
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