How often should you apply for a credit card?

When it comes to how often you should apply for a card, there’s no one-size-fits-all answer. But there are a few key points that could help you decide. 

Before you apply for a new card, it’s helpful to understand how it might impact your credit. And considering factors like interest rates, annual fees and credit limits can help you choose the card that best fits your financial goals.

What you’ll learn:

• Credit card issuers have their own rules about applications and accounts.

• A new credit card application typically triggers a hard inquiry, which may temporarily lower your credit scores by a few points. 

• Several hard inquiries in a short time may have a more significant impact on your scores. 

• Checking whether you’re pre-approved for a card could help you avoid unnecessary hard inquiries.

Deciding when to apply for a credit card varies from person to person. But the Consumer Financial Protection Bureau (CFPB) recommends applying only for the credit you need. 

Keep in mind that while applying for a new card may temporarily impact your credit scores, using it responsibly may help you improve your scores over time.

Some card issuers have limits on how often you can open a new account. Here are a few examples. 

• The 5/24 rule: For some issuers, applicants can’t open more than five new credit card accounts in 24 months.

• The 2/3/4 rule: According to this rule, applicants are limited to two new cards in 30 days, three new cards in 12 months and four new cards in 24 months.

• The six-month or one-year rule: Some credit card issuers may let borrowers open a new credit card account only once every six months or once a year.

There’s no set number of credit cards you can apply for at once. But each credit card application can trigger a separate hard inquiry, which happens when a lender checks your credit file.

Opening a new credit card may affect your credit scores. It can change factors like your credit utilization ratio and the length of your credit history, both of which play a role in determining your scores. 

Credit scores vary based on the scoring model used. Companies like FICO® and VantageScore® calculate them differently, so it can be hard to predict how a new credit card account might affect your credit scores. If you’re unsure about your next step, a credit score simulator may help you see the possible impact of a new application.

Even if you don’t open a new account, applying could have a small effect on your scores. When you apply for any kind of loan, the lender will likely look at your credit reports and scores as part of determining whether to approve your application and what interest rate to offer you. For its scores, FICO says a hard inquiry “will take less than five points” from most applicants’ scores.

Experian® and Bankrate suggest waiting six months before applying for additional credit cards to help protect your credit scores from the negative effects of multiple hard inquiries. According to the CFPB, applying for several credit cards over a short period of time may lead to lenders thinking your financial situation has taken a negative turn.

Keep in mind that other factors, like your payment history and credit utilization ratio, can still affect your credit scores between applications.

Here are some things you might consider doing before you apply for a new credit card.

Some issuers allow you to check for pre-approved card offers before you apply. Getting pre-approved can show you which cards you may be eligible for without triggering a hard inquiry. 

Capital One’s pre-approval process is quick, and it won’t hurt your credit scores. It requires only some basic information, such as your legal name, address, Social Security number, employment status and income.

One way to track your credit is with CreditWise from Capital One.

CreditWise is free, even if you don’t have a Capital One account. It has tools to check your credit and stay on top of changes. And using it won’t affect your credit scores.

You can also get free copies of your credit reports from all three major credit bureaus by visiting AnnualCreditReport.com.

The CFPB recommends comparing credit cards before you apply. You might consider looking into annual percentage rates (APRs), annual fees, rewards programs and bonuses.

Your spending habits matter too. If you want an easy way to earn money on everyday purchases, a cash back card like the Capital One Quicksilver card might work well. If you travel often, a travel rewards card like the Capital One Venture card could be a good fit.

How often you should apply for a credit card depends on your personal finances. Experts suggest applying only when you need credit to avoid unnecessary hard inquiries.

If you’re considering a new card, take some time to compare Capital One credit cards. Exploring your options can help you find one that fits your needs.

New to credit or searching for your next credit card? Capital One can help.

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise from Capital One. It’s free for everyone, and using it won’t hurt your credit.