How Often Should You Apply for a Credit Card?

Credit utilization ratio

New lines of credit may influence your credit utilization ratio, which is your outstanding balance compared to your total available credit. But it’s important to resist any urge to overspend on your new cards. Try to keep your balances low on new credit cards to minimize your credit utilization. A lower credit utilization ratio may increase your chance of credit approval or a credit limit increase in the future.

Average account age

New credit cards also bring down the average age of your accounts, which may affect your credit score. If you have an extensive credit history, a small change in the age of your accounts may not make a huge difference. But if you’ve only recently started building credit, the impact of your accounts’ average age may be more significant.

Credit mix

Before you apply for a new card, you may also want to consider your credit mix. Typically, lenders want to see that you can manage both revolving credit—like a credit card—and installment credit. If you already have one or more credit cards, opening a new account won’t improve your credit mix. But if you have mostly installment credit, like personal loans, student loans, or auto loans, a new credit card account could improve your score by increasing your credit mix.

Card issuers may limit how often you can open a new credit card account

Each card issuer has its own set of rules to determine eligibility for their cards, including how often you can apply for a credit card, how many credit cards you can obtain within a set time period, and even how many total accounts you can have.

Some may require you to wait a year after one account opening before you open a second account and may also limit you to two accounts with them.

To find out how often you can apply for a credit card, contact the card issuer for specific details.

What to consider before applying for a new credit card

Before you apply for an additional credit card, you should consider a few factors that might influence your decision.

• Your credit score. Your credit score influences the credit cards you may qualify for, as well as your credit limit and interest rate. If you’ve worked to build an excellent credit, you may want to consider an additional card that meets your needs. However, if your score isn’t where you’d like it to be, you may not be in the best position to manage multiple credit cards.
• Existing credit card debt. You shouldn’t take on more credit card debt than you can manage. If you’re struggling to cover an existing balance, you may not want to take on another card until you’ve repaid your debts.
• Other financial factors. While your credit history is important, it’s not the only financial factor that might influence your decision. For example, if you’ve recently gotten a raise, you may want a new credit card to increase your available credit. On the other hand, if you’re planning to apply for a mortgage or another major loan soon, you might want to delay your credit card application.
• Rewards. You may want a new rewards credit card with perks that your current card doesn’t offer. For example, maybe you have a credit card that offers travel rewards on eligible purchases. You might want to apply for a card that rewards other everyday purchases, too.

The bottom line

There's no set guideline for how long you should wait between applying for new credit cards. It depends on your personal situation. If your credit score is healthy and your financial situation is stable, you may not need to wait at all.

However, if you plan on applying for a loan, mortgage, or refinancing, you should consider spacing out your credit inquiries by several months. Even if a credit card issuer has recently denied your application, it’s worthwhile to wait before applying for another card if you’re working on rebuilding your credit.