How long do I have to wait between credit card applications?
There are a lot of really great credit cards that offer rewards on everything from trips to the grocery store. Opening a new credit card can help you earn money on your daily purchases, transfer and pay off a balance, turn a signup bonus into a free flight, and even boost your credit score. .
Of course, it’s unlikely that just one card can make all of your credit card dreams come true. So there is a good chance that you will want to apply for more than one of today’s best credit card deals.
But that doesn’t mean you have to apply for multiple credit cards at once. In most cases, waiting between credit card applications is better for your credit score and may even improve your chances of being accepted.
How often should you apply for a new credit card?
While the number of credit cards you should have is up to you and you can apply for new lines of credit as often as you want, it’s a good idea to wait at least 90 days between new credit applications. credit card – and it’s best if you can wait a full six months.
Waiting between credit card applications helps protect your credit score from the negative effects of too many credit applications, and it also helps ensure that you don’t violate credit application restrictions. credit card.
Capital One, for example, has been known to limit applicants to a new credit card every six months, so if you apply for a new Capital One card before the six-month restriction ends, your application will likely be rejected.
How long does the credit card application process take?
If you are applying for a credit card online, the credit card application process usually only takes a few minutes. The time it takes to get a credit card approved can vary, but in many cases, you’ll know immediately if you’ve been accepted or rejected. You may be required to provide additional financial information or proof of identity before the lender can make their decision.
If you are accepted for an instant use credit card like the Apple Card or Uber Visa card, you will be able to start using your new credit card immediately. Otherwise, you will have to wait for the card to reach you in the mail, which can take seven to ten business days.
If your credit card application is denied, the lender is required to provide an explanation. This is commonly referred to as a notice of adverse action, and it can happen by email or letter. Expect to receive your Adverse Action Notice within seven to 10 days of your credit application and use it to understand why you received a credit denial.
If your credit score wasn’t high enough to meet the criteria, for example, you might want to take the time to establish your credit score before your next application.
Why should you wait between credit card applications?
There are two good reasons to wait between credit card applications. The first reason is that 10% of your FICO credit score is based on a factor called “new credit”.
When you apply for a credit card, the lender performs a credit check (often called a credit check or direct draw) on your credit report. Your credit score usually drops after each credit check, but it should bounce back pretty quickly. If there are too many recent credit inquiries on your account, your credit score could be impacted more significantly. Why? Because many recent credit inquiries are seen by lenders as a signal that you may be considering getting into serious debt.
The other reason to wait to apply for new credit concerns credit card application restrictions. Some credit card issuers automatically decline credit card applications if you have already opened a certain number of credit cards within a certain period of time.
Chase, for example, will not accept applicants who have opened more than five credit cards in the past 24 months. If you want to give yourself a better chance of being accepted, it’s a good idea to wait between credit card applications.
How many credit cards can you apply for per day?
Technically, you can apply for as many credit cards as you want in a single day. There is no limit to the number of credit card applications you can submit. However, applying for a large number of credit cards on the same day is not a good idea. Since your credit score drops after each new credit application, applying for multiple credit cards in one day could hurt your credit score more than you might think.
Additionally, when you apply for multiple credit cards on the same day, credit card issuers may see that you are submitting multiple requests at once. If you have great credit, this might not be a problem. But if your credit is less than excellent, these lenders might be less likely to accept your demands. Instead, they’ll wonder why you need so much credit at once and if you’ll be able to handle it responsibly.
Credit issuers with card application restrictions
While most credit issuers don’t officially announce restrictions on how often you can apply for new credit cards, that doesn’t mean those restrictions don’t exist.
Sites like The Points Guy use first-hand acceptance and rejection reports to find out when a credit card issuer is more likely to decline your application, which gives a lot of information on when you should apply for one. new credit. Here is some information The Points Guy gathered about the restrictions for different issuers:
American Express application restrictions
American Express announced in 2020 that it was limiting cardholders to a maximum of four American Express credit cards and a maximum of 10 Amex payment cards. American Express also reportedly limited cardholders to a maximum of two card requests in a single 90-day period.
Bank of America Application Restrictions
According to cardholder reports, Bank of America uses a 2/3/4 rule: you can only be approved for two cards in a 30-day period, three cards in a 12-month period, and four cards in a period. 24 months.
This rule applies only to Bank of America® credit cards, but not to all credit cards. Therefore, if you have purchased four cards from other credit issuers in the past year, you can still apply for a new card from Bank of America. .
Capital One application restrictions
Capital One would limit cardholders to one new Capital One credit card every six months. You can also only open two Capital One personal credit cards at any one time, although Capital One co-branded cards and Capital One business credit cards do not fall under this restriction.
Get rid of application restrictions
Chase’s 5/24 rule is probably the most well-known credit card application restriction. If you have purchased more than five new credit cards in the past 24 months, whether they are Chase credit cards or cards from another issuer, Chase will not accept you for a new credit card.
The 5/24 rule is in place to prevent credit card churn and to ensure that Chase’s best travel credit cards are less likely to fall into the hands of people who are only interested in claiming a valuable bonus of registration.
Citi application restrictions
Citi only allows one new Citi credit card application every eight days, and you cannot apply for more than two Citi credit cards within 65 days. You are also limited to one application for a Citi business credit card every 90 days.
Learn about application restrictions
Cardholders would be limited to one new Discover credit card per year and no more than two Discover cards at any one time.
Wells Fargo Application Restrictions
Depending on the terms and conditions listed on many Wells Fargo credit cards, you may not be eligible for a new Wells Fargo card if you have opened a Wells Fargo card in the past six months. Wells Fargo may also limit the total number of card accounts you can open.
The bottom line
These credit card application restrictions reveal that certain types of credit card refusals can be based on nothing more than bad timing. If your credit score is high enough for the credit cards you’re hoping to open, it’s a good idea to wait the minimum amount of time required to give yourself the best chance of acceptance.
While waiting three to six months between credit card applications can seem frustrating, it’s better to wait than to apply, be denied, and lose credit score points due to an investigation. thorough.
If you already have a rewards credit card in your wallet, try using your waiting period to see how many rewards you can earn and redeem. to see how close you can get to a perfect credit score.
Apple card and Uber Visa card information was collected independently by Bankrate.com. Card details have not been reviewed or approved by the card issuer.