How long to wait between credit card applications

Quick insights

• The proper amount of time to wait between credit card applications can vary widely from person to person.
• Some factors to consider include your credit score, the number and age of your current accounts, current welcome bonus offers and more.
• Most lenders have their own rules and recommendations surrounding waiting times between credit card applications, and it can be helpful to review these before applying again.

Factors that influence how long you should wait between credit card applications

There is no universal, one-size-fits-all rule that governs how long to wait between credit card applications. Consider the following factors when making a decision that works best for you:

• Current accounts: The age, credit limit and payment history of your current accounts can weigh into your decision whether to apply for a new credit card.
• Credit score: Your credit score is one of the factors that go into a lenders’ decision whether to approve you for a credit card. If your credit score is lower than the lender’s recommended minimum, you might want to wait to raise your credit score before applying. Also, note that your credit score typically decreases temporarily after each credit card application due to the hard credit inquiry made by the lender; you may want to wait for your score to recover before applying for another card, especially if you’re working to improve your credit.
• Lender restrictions: Many credit lenders have specific restrictions that govern their approval process; for instance, a lender might be more likely to deny your application if you opened three new accounts in the past 12 months or five new accounts in the last 24 months.
• Credit utilization ratio: While opening a new account could be a good way to lower, and potentially improve, your credit utilization ratio, a high ratio could paradoxically be a reason for denying your application. To help improve your chances of being approved for a new credit card, you may want to lower your credit utilization ratio to below 30% before applying.
• Welcome bonus: If you’re looking to open a new account to receive an enticing welcome bonus offer, read the terms and conditions to ensure you qualify for that bonus now or if you need to wait before applying.
• Annual fees: Many credit cards require the payment of an annual fee; you should consider the timing and amount of these fees when researching a new card, especially if that card requires you to pay an annual fee.
• Large loans: If you plan to apply for a large loan, such as a mortgage or auto loan, in the next 6-12 months, you may wish to delay applying for a credit card. Banks might be less likely to approve your loan if you recently opened a new line of credit, especially if it led to an increase in your debt-to-income ratio.

Common waiting periods

It can be a good rule of thumb to wait between applications when applying for new credit cards. Many borrowers typically wait between applications to avoid opening more than one or two new accounts every six months, more than two or three accounts per year, and more than four or five accounts every 24 months. There are several other factors that weigh into this — such as income, credit score, credit history, etc. — so even four or five cards every two years might be too many for your personal situation. It is worth reviewing the rules and recommended waiting periods of various lenders to help shape your own strategy, as each bank has its own rules and practices.

Strategic approaches to credit card applications

There are numerous potential advantages to being strategic about your credit card applications, We'll review a few of the more common ones now:

• Welcome bonuses: As previously mentioned, it can be helpful to wait for an appealing welcome bonus before applying for a new card. Many lenders offer different promotions throughout the year, so if you don’t see a welcome bonus that interests you now and you don’t mind waiting, it might be worthwhile to do so.
• Likelihood of approval: You may want to review the most common reasons credit card applications are denied to preemptively address those concerns and potentially increase your likelihood of approval. If you were recently denied a new credit card account, you should consider addressing the causes of that rejection before trying again.
• Card features and benefits: Every credit card is not a good fit for every borrower, so it’s worth reviewing the full list of features, benefits, terms and conditions to find the card that best fits your current situation.

Monitoring your credit after applying

New credit applications typically cause a hard credit inquiry, which can temporarily lower your credit score. Keeping an eye on your credit score, current credit limit and credit utilization ratio can be responsible credit habits, especially in the month or two after applying for new credit. Free online resources, like Chase Credit Journey^®, can help make credit monitoring easy for even the least experienced customers.

Bottom line

While there isn’t a hard and fast rule governing the waiting time between credit card applications, there are some guidelines that can help your chances of approval . It can be useful to review lender restrictions, your credit score and credit utilization ratio, card bonuses and the credit limit across your current accounts. Above all else when considering credit card options, you may want to be careful never to spend more than you can afford and try to pay off your debt each month to help avoid fees and interest.