Credit cards have become a necessity nowadays. Mostly everyone has credit cards & we all make payments & purchases using our credit cards & it has even decreased the use of cash. Moreover, with the use of credit cards, we receive reward points, cash back, and all. A single credit card, of course, is unlikely to fulfill all of our credit card goals. But that does not mean that we should apply for different credit cards at once. It may cause some issues. So, how long should I wait to apply for another credit card?
Usually, it is advised to apply for a new credit card after six months of the old credit card. With this much time interval, the chances of approval will increase & your credit score will not get impacted. Let’s get to know more about this in detail!
How long should I wait to apply for another credit card?
It’s a good idea to wait around six months before applying for new credit cards because doing so too frequently will harm your credit.
Delaying credit card applications helps preserve your score from the damage that too many credit inquiries may cause, as well as helps you stay within the bounds of any credit card limits that may be in effect at the time of your application.
But if you have good credit, good income, and good payment history, you may be able to apply for additional credit cards and still be approved. This is because card issuers view you as a low-risk customer who will make timely payments.
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Why should you wait between credit card applications?
It is due to multiple applications that can cause a credit score risk to your profile. In your FICO score, about 10% comes from how many new credit accounts you have and how many recent applications for new credit you have made in the last few months.
Even though that makes them less important, applying for multiple credit cards in a short period of time can hurt your credit score for a short time but could be bad for your credit.
In a short period of time, multiple credit card applications are taken as a sign of financial trouble by credit card companies. However, if you make multiple inquiries in a short period of time, the impact on your score is likely to be greater, and you run the danger of being denied credit in the future because of the perceived risk.
As a result, it’s best to wait at least six months before applying for another credit card. However, three months is a decent rule of thumb when applying for new credit cards if you have excellent credit.
How often can I apply for a credit card without hurting my credit?
You should wait for at least three months before applying for a credit card, which will not impact much on your credit score. However, it is always advised waiting for six months is great for applying for another credit card.
People who apply for credit cards every six months have a better chance of getting approved if they wait that long.
You may need to wait longer between credit card applications if your credit is average or poor if you want an improved chance of getting approved.
Can I apply for another credit card after being approved?
If you are applying for another card just after getting approved, it is still not advisable. You will need to wait for at least three months. Even it will be best if you will wait for six months. In this period, your credit score will not get impacted & the chances of getting approval will also increase.
If you want your credit card to have more limit than other cards, then you should wait even longer & build your credit score even higher. This will help lenders to provide you with a high credit limit.
If you have exceptional credit, a high income, and a track record of on-time payments, you have a decent chance of approval even if you apply in fewer than three months.
Can you apply for the same credit card twice after being denied?
Yes, you can apply for the same credit card twice, even after being denied. However, before applying again, you should check whether there were any problems from your side or you have completed all their requirements or not. You should even check your credit score to increase the chances of getting approval.
To increase the possibility of getting approval, you should wait for at least six months. However, if you reapply in a short period, it will affect your credit score.
A card provider may decline your application if you have had an excessive number of recent hard inquiries or credit card applications.
So yes, you can reapply for denied credit cards but try to wait for at least three to six months to do it.
When should you drop off the idea of applying for another credit card?
There are some circumstances in which you should delay applying for a new credit card. If any of the following factors applies to you, applying for a new card is almost certainly not in your best interest:
1) Loan Application
It’s a great idea to hold off on getting a new credit card if you’re in the process of applying for another loan. Credit card applications barely account for 10% of your credit score and have a negligible impact on your credit rating. However, every point counts if you want to get the best rates feasible & highest amount for the loan.
2) While rebuilding credit score
The best way to build back up your credit is to do it step by step and carefully. Additionally, you’ll want to avoid temptations that have previously gotten you into difficulty, such as applying for a new credit card.
Even if you believe you will be approved, wait at least six months between applications to ensure that your credit score will not hurt.
3) When you’re rejected
If you’ve recently applied for a credit card and it was denied, your score will go down. As a result, your odds of receiving approval for further applications are little to none.
Consider calling the card company to find out why your application was turned down. The next step would be to improve your credit by paying your bills on time and cutting down on your debt, which will help. Then, after at least six months, try again with a better chance of getting in.
What are the rules & restrictions of different credit card companies?
Most credit card companies don’t say how often you can apply for new credit cards, but that doesn’t mean there aren’t rules. Here are rules & restrictions of credit card companies on how often one can apply for credit cards:
Capital One: People who have a Capital One credit card are said to be limited to one new card every six months. It’s also possible to only have two Capital One personal credit cards open at any one time.
Chase: Chase’s 5/24 rule is one of the most well-known restrictions on applying for credit cards. Chase won’t let you get a new credit card if you’ve had more than five new cards in the past two years, even if they were from Chase or another company.
Citi Credit Card: It’s not possible to apply for more than two Citi credit cards in a 65-day period if you’ve already received one from Citi. In addition, you are only allowed to apply for one Citi business credit card per 90 days.
Discover: It’s only possible for people who have Discover cards to apply for one credit card a year. In addition, you cannot apply for more than two credit cards at a time.
American Express: Credit cards are subject to a 2/3/4 rule enforced by Bank of America. You can apply for two credit cards in 30 days, three credit cards in 12 months, and four credit cards in 24 months.
Wells Fargo: Wells Fargo also asks cardholders to wait at least six months before they can apply for the second one of their own.
We hope you got a satisfactory answer: ‘ How long should I wait to apply for another credit card?’ You should always wait for at least three months & six months at best to apply for another credit card.
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