Read This Before You Apply for a Credit Card

Credit card companies release tempting offers on a regular basis. With so many attractive sign-up bonuses, it might seem hard to resist applying for them all. However, bank application rules and the impact on your credit score mean there are limits on how many cards you can apply to at once. So, how often should you apply for a credit card?

In this article, learn when to apply, what impact it makes on your credit score, and some reasons to hold off. You can also find out the application rules for the largest credit card issuers.

When you apply for a new credit card, it can affect your credit score in multiple ways. Here’s what happens to your credit report and score:

Your payment history is not affected by opening a new card. However, if you don’t handle this new account responsibly and make all of your payments on time, your payment history could be negatively affected. Sign up for automatic payment of the minimum amount due to ensure that you never miss a payment.

There’s a difference between wondering “how often can I apply for a credit card?” vs. “how often should I apply for a credit card?” Issuer application rules generally dictate how often you are eligible to apply for a new credit card.

In general, you should apply as often as you like so long as you can meet the minimum spend requirements, your credit score stays at an acceptable level, and banks allow you to open an account. A conservative approach is to wait about six months between credit card applications.

Bethany Walsh, the founder of BougieMiles.com, says, “If you have a long-established credit history, you’re OK to apply for cards more frequently because a large number of hard inquiries and new accounts will have less of an impact on your scores.”

If you have a lower credit score and are working on rebuilding your credit, limit your applications to one a year so the impact on your score is minimal.

Although credit card offers can be tempting, there are numerous reasons why it is better to wait.

Walsh warns, “If you’re planning on applying for a loan, you should hold off on applying for new credit cards. You never want to take a chance that the loan originator will deem new accounts as a sign that you’re financially unstable.”

The number of credit cards you can apply for at once varies by the card issuer. Each bank has its own rules. In some cases, these rules are shared publicly, while others have been crowdsourced by the credit card churning community.

Lisa Kulpa, the co-founder of BasicTravelCouple.com, says, “You can technically apply for as many as you want. However, you won’t get approved for them all. It pays to be strategic about your applications.”

Here’s how the application restrictions break down by card issuer:

American Express has several rules that affect your ability to get approved for a new card and qualify for a welcome offer. The good thing is that AmEx implemented a pop-up window during the application process that lets you know whether or not you’re eligible to receive a welcome offer for the selected card so you can cancel before completing the application.

Bank of America’s rule, known as the 2-3-4 Rule, is simple. This rule limits you to two new cards within 30 days, three new cards within 12 months, and four new cards within 24 months.

Capital One has several rules to understand when applying for a new credit card.

Chase’s application restrictions are probably the most well-known among people who churn credit cards. They’re also some of the most restrictive rules on this list because they count activity at other banks as well.

Citi has a few rules that cover the timing of your applications and eligibility to receive a bonus.

Discover limits customers to a total of two Discover cards. Additionally, you may only have one student Discover card at a time. Discover also limits cardholders to a maximum of one new card per year.

U.S. Bank does not have any specific application rules for the majority of its cards. However, you must be an existing U.S. Bank customer if you want to apply for the Altitude Reserve Visa Infinite Card. If you’re not already a customer, open a deposit account before applying.

While Wells Fargo does not have specific application rules regarding the number of cards you may have open, it does have generic language stating that it can limit the total number of open Wells Fargo cards you have.

How often should you apply for a credit card? The answer is that it depends.

Everyone’s credit history is different, so the impact to your credit score won’t be the same as someone else’s. Issuer application rules limit who can apply and how many cards they’re eligible for. And, as attractive as some card offers are, there are outside reasons why you should hold off on applying. Make sure that the offer is worth it, that you can meet the minimum spend requirement, and that it won’t impact bigger financial goals, like a new mortgage.