The Waiting period between credit card applications ranges between 3-6 months. You should, however, apply cautiously if you’re seeking multiple cards since frequent requests put you in the risk radar, and card issuers could reject your application.
Issuers require individuals with a positive history on timely payments and a medium-high income to apply for multiple cards. Low-risk customers rarely default on payments, and that’s what financial institutions care about, more than issuing a string of flashy cards to every applicant in need of one.
On the flip side, if your credit score hovers between average or below average, you may have to wait for more than the standard six month-waiting period between card applications for approval.
Table of Contents
- Why the Long Wait?
- So How Long Should You Wait To Apply For Another Credit Card After Approval?
- Your Credit Score
- Your Approval Odds
- Why should you wait before applying for another credit card?
- Final Word
Why the Long Wait?
Multiple credit card applications suggest risk, and issuers suspect such an action as a sign of desperation or financial distress. If you have financial difficulties in paying your existing cards, that’s a red flag right there, and you can bet issuers will detect the inconsistency.
FICO reveals that individuals with more than five inquiries on their credit standing are more likely to default future payments, and probably declare for bankruptcy compared with folks who rarely make inquiries on their credit scores.
FICO also says that other factors considered for multiple credit card applications are how you pay your monthly bills, and your overall debt. If your payments check-in promptly, you can quickly get away with frequent card applications and get approved within a couple of months. But it’s not cast in stone.
When applying for multiple cards within short periods, beware of the risk of card disapproval or your future loan applications; because these two applications go hand in hand. The trail of applications leaves footprints that financial institutions are happy to revisit.
So How Long Should You Wait To Apply For Another Credit Card After Approval?
The good news is that there are no rules for specific waiting periods in between credit card applications. The silent law, however, is to hold on for at least six months before you can apply for an additional card.
Also, consider the following market tips before you sign a new contract:
Your Credit Score
Multiple credit cards attract low credit scores. So, expect a dent each time you make an application for a new card.
Credit card issuers dig into your debt history and lower your score up to five points for each hard pull.
Several applications in a year take a massive dip into your score due to the low average within a short period.
If your applications are approved, your credit score may also drop due to a new, the average age of the new accounts.
Your Approval Odds
A hard review of your credit history can affect your credit score negatively. Because of the effects, make sure your debt payment history reflects positively because too many applications indicate risk, and issuers may quickly dismiss your application if you have a bad credit score with your current credit card.
In case your application is declined, carefully look into the reasons for the denial and try to remedy your poor score before making another card application.
Why should you wait before applying for another credit card?
We mentioned earlier that the standard waiting period before you can apply for another card is six months. Here is why you should wait:
1. Low credit scores for the card you need
Before signing any paperwork, check your credit score and see what card best suits your financial standing. If it’s low, maybe you can hang on a few more months as you build your credit score for your preferred card.
2. Consider future loans and mortgages
If you line up more credit cards in your wallet and then later go for an auto loan or a mortgage, you may want to consider the interest rates on your overall debt. Remember, credit card purchases debts that you must clear within a prescribed period. The slightest increase to your existing debts means you have to pay thousands of dollars in interest rates with your current loans. Protect your credit score and stay away from more debt if you can.
3. Recurrent Expenses
Credit cards offer temporary financial relief when you need to buy something, and you do not have cash on you. Remember, it’s a debt. The more you buy the more debt you incur. Singing up for more credit cards, in this case, indicates you have a problem managing your finances. Instead of acquiring an extra card, cut your expenses, and pay off what you owe. Once the debt clears, you can sign up for the long-awaited card – and spend wisely because your monthly bill goes higher with more cards in your wallet.
4. Are you looking to bag a signup bonus?
Most signup bonuses are all about expenditure. If you need the bonus points so severely, then don’t go for a new card. Instead, maintain all your card purchases on your current card to earn the bonus faster. Besides, a new card lowers your score, and you have to build that up along with points for miles or discounts at specified stores.
5. You just applied for a new credit card
Multiple card applications within months of each other raise a red flag with issuers. It implies you are a high-risk client and therefore reject your request or delay until investigations prove otherwise. An issuer will typically frown upon multiple applications within a short time. So, before making an application, read through the fine print, including the requirements to check if you can hack the application.
6. The future
You’ll come across tempting limited signup bonus with credit card issuers, the question is, can you maintain multiple cards? You decide if it’s worth the risk. Mortgage and car lenders refer to your credit score to determine your interest rate.
So how do you make this work in your favor?
Go slow on your credit inquiries to even out the rates on your long term loans. Lenders do not dissuade you from owning multiple credit cards. On the contrary, they love a healthy mix of credit, long term loans with minimal financial commitments. In other words, your bank account should never run dry.
7. The Issuer’s Policy
Your issuer’s application policy helps to determine if you qualify for another card or not.
These rules help to reduce churning of credit cards where cardholders discard old cards and sign up for new ones to enjoy the considerable signup bonuses.
has a churning policy that checks eligibility to its popular cards with the 5/24 rule. You cannot get approval at chase if you have five credit cards opened within the last two years with any issuer.
allows applications for one card after eight days, but you can only have two cards within a 65-day gap.
limits two personal cards approved within six months apart.
There are no set rules to limit the number of credit card applications you make. The waiting period is pegged on your credit score. The approval thereof (your waiting period) is up to you. Apply for a credit card only when you have a pressing financial need to do so, and when you have confidence with your financial stability.