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 some considerations that can help you figure out what’s best for your situation. 

Before you apply for a new card, it's important 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. Keep reading to learn how timing your applications can affect your financial health.

What you’ll learn:

• Credit card companies 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. 

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

• Checking for pre-approved card offers before accepting an offer for a new credit card may help you narrow down your options and apply more strategically.

The Consumer Financial Protection Bureau (CFPB) recommends applying only for the credit you need. The right number of credit cards varies from person to person. It all depends on your unique circumstances.

Credit card issuers may have their own rules and limits as to 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 companies may only let borrowers open a new credit card account once every six months or once a year.

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.

Applying for a card can also result in a hard inquiry, in which a lender checks your credit file. The CFPB says a single hard inquiry usually has a small impact on your credit scores. But multiple hard inquiries in a short time could lower your scores more. As the CFPB explains, “If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively.” 

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.

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

Some credit card issuers let you check for pre-approved card offers before you apply. Getting pre-approved can help give you an idea of which cards you may be eligible for without triggering a hard inquiry. 

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

The CFPB says you might want to avoid applying for a credit card during or right before applying for a mortgage in order to avoid multiple hard inquiries in a short period. 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.

If you're struggling to manage high-interest credit card debt, you might consider consolidating your credit card debt. One way to accomplish this is with a balance transfer to a new credit card.

A balance transfer can help you combine multiple credit card payments into a single monthly payment. Some cards offer low or 0% introductory rates, but these rates only last for a set period. Depending on the card issuer, you may also have to pay a balance transfer fee.

Debt consolidation won’t erase your debt, but it could help make payments more manageable. You might also consider speaking with a credit counselor to explore other ways to handle your debt.

It’s a good idea to know where your credit stands, whether you're planning to apply for a new card or not. One way to track your credit is with CreditWise from Capital One.

CreditWise lets you check your credit report and scores whenever you want without affecting your credit. This free credit monitoring tool is available to everyone, even if you don't have a Capital One account.

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. Doing so might help you figure out what features and benefits are most important to you. While researching, you may consider looking into annual percentage rates (APRs), annual fees, rewards programs, and credit card offers like sign-up bonuses.

When choosing a rewards credit card, 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.

Here are the answers to a few frequently asked questions about applying for new credit cards:

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

If you're considering a new card, take some time to compare Capital One credit cards. Looking at different options can help you find one that fits your needs. It’s quick and easy to see if you’re pre-approved too—with no harm to your credit scores.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit scores.

• Explore Capital One travel rewards cards and get rewarded for the way you travel with unlimited miles.

• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use. 

• Earn unlimited 3% cash back at grocery stores and restaurants with Savor.