Tuesday, September 27, 2022

How Soon Can You Apply For Another Credit Card

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Reasons You Should Get A Second Credit Card

How Often Should You Apply for a New Credit Card?

It might be a good time to get a second credit card if youre looking to:

  • Improve your credit score. There is a benefit to having more cards, said Tamar Asken, a certified financial planner and real estate agent in Los Angeles. Having two or three cards is one kind of proof that you can manage debt and credit and maturely meet obligations, she said. Plus, it will increase the total credit available to you, which, if you dont use most of it, raises that all-important FICO score.
  • Have a backup in case of emergency. Say you lose your card. Most credit card companies will rush out a replacement within 72 hours, said Martin Lynch, a compliance manager with Cambridge Credit Counseling Corp. in Agawam, Massachusetts. But especially if youre traveling, youll have a new one that can tide you over, he said. Lynch has three credit cards, one of which stays home in case his wallet gets lost or stolen.
  • Diversify card benefits. Maybe your one card is a plain charge card. A second card could be a rewards card. Or, if you already have a travel awards card, a second one could be a cash back card. The second card you can use that to balance what youre not getting from the first card, said Beverly Harzog, consumer credit expert and author of the book The Debt Escape Plan.

Get A Secured Credit Card

A secured credit card is another option for getting a credit card when you don’t have the best credit. This type of credit card requires you to make an upfront security deposit against the cards credit limit. The deposit is placed in a savings account and only used if and when you default on your credit card payment.

After youve made your payments on time for six to 12 months, some will convert your secured credit card to an unsecured one. Once you’ve converted your account, your security deposit will be returned to you.

Even if your secured credit card doesn’t automatically convert, you may be able to qualify for a regular credit card after using your secured card responsibly for a while.

How Long To Wait To Apply For Another Credit Card

by Lyle Daly | Updated Sept. 7, 2021 – First published on Dec. 14, 2018

Many or all of the products here are from our partners. We may earn a commission from offers on this page. Its how we make money. But our editorial integrity ensures our experts opinions arent influenced by compensation. Terms may apply to offers listed on this page.

Find out how long you should wait between credit card applications to maximize your chances at success.

With all the benefits you can get through different , you may find yourself wanting a new card even though you just got one recently. Or, if you were denied on a credit card application, youll probably want to know how long to wait before applying for another credit card.

The answer will vary based on both your situation and the card youre applying for, but we can figure out some guidelines to make it more likely that youre approved.

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Other Times You Might Want To Put Off Applying For A New Credit Card

There are other scenarios where you should put off applying for a new credit card. If any of the following apply to you, submitting an application for a new card probably isnât in your best interest:

  • Youâre applying for a loan. If youâre thinking about applying for a loan or you have recently applied for a loan, consider waiting before applying for a new credit card. Credit card applications only account for 10% of your credit score and donât have that much of an impact on your credit. However, when youâre trying to get approved for a loan at the best rates possible, every point counts.

  • Youâre trying to rebuild your credit score. Applying for a new line of credit involves hard inquiries, which can bring down your credit score.

  • Youâve recently been rejected. Any recent rejected credit card application will have brought down your score, and so will any new ones that you submit. As such, your chances of being approved for additional applications will more than likely be rejected.

How Soon After A Mortgage Closing Can You Apply For A New Credit Card

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Congratulations! Youve just bought a house! Or maybe youre considering the possibility.

With average mortgage interest rates reaching all-time lows, many people have decided its time to take the plunge into homeownership or for current homeowners to refinance their higher rates in order to get a lower monthly payment or cash out equity.

What does this mean for avid travelers who sign up for travel rewards credit cards with regular frequency? Typically, buying or refinancing a house means needing to temporarily put the brakes on signing up for the latest and greatest cards.

Related: The best travel credit cards of 2020

How long after closing on your mortgage do you need to wait in order to apply for your next travel rewards credit card? We talked to some mortgage industry professionals to find out some of the dos and donts during the mortgage process and how long you should wait after closing before applying for new credit cards.

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Chase Business Credit Cards

Chase business credit cards are affected by 5/24 .

Chase business cards do not show up as a new account on your credit report and therefore do NOT add to 5/24.

For example, you can be at 4/24, add a Chase Ink Cash card, and you would still be at 4/24.

On the flip side, if you are at 5/24, and apply for a Chase Ink Cash, the application would be rejected due to the 5/24 rule.

What To Look For In A Second Credit Card

How long should you wait to apply for a credit card after being declined?

So, youve analyzed your situation, made up your mind and decided that youre still interested in that second card. Here are some points to consider before applying for an additional card:

  • Make sure it matches your lifestyle. Do you want travel rewards points? Cash back? A card for emergencies? If a higher credit limit is all youre after, the best option is to go to your original creditor and ask for one, said Bruce McClary, spokesman for the National Foundation for Credit Counseling in Washington, D.C. Looking for a better interest rate? Fine, but dont take that as a license to rack up new debt, he said.
  • Note the annual fee. Annual fees can range from $0 to over $500. Make sure that the fee on the card you like is worth it to you. Youve got to look at your spending style, Harzog said. Are you going to be able to maximize the benefits from the rewards? If not, youre better off sticking to a no-annual-fee card.
  • Read the fine print. Interest rates matter and can vary from card to card. The Federal Reserve is in a rate-hiking cycle. Plus, most cards advertise a range of APRs and you wont know what your APR will be until you are approved, so know that any balance you carry on the card could become very expensive if you dont pay it off every month.

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Re: When Can I Apply For A Second Capital One

Hi! It’s six months. I personally asked a CSR. She said that I can app anytime for a new card, but it “may” be denied if a card has been approved in the previous six months. Also, others on MyFico also state that the wait time is six months.

wrote:

Hi! It’s six months. I personally asked a CSR. She said that I can app anytime for a new card, but it “may” be denied if a card has been approved in the previous six months. Also, others on MyFico also state that the wait time is six months.

^^^^This^^^^^

Best Strategy For Applying For American Express Cards

With all of these rules in place, what is the best strategy for applying for American Express cards?

If you are a small business owner, it is best to start with a business card. Since business cards do not count toward the four card rule, you will be able to earn great rewards for your business expenses while not losing out on opportunities for consumer cards.

You can apply for the consumer cards until you reach the four-card limit. Keep in mind that if you have hit your four-card maximum, you can cancel one consumer card to apply for a new one.

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Read The Rejection Notice

The issuer must give a reason for rejecting the application if its because of information in your credit report. Its an “adverse action” notice. If the denial is because of income or another non-credit factor, the issuer will probably tell you that, too. You might get the notice as an electronic statement immediately after you apply, or by letter or phone.

The notice provides a clue about what your issuer wants in an applicant and how you can improve your chances of approval. Here are common reasons for rejection:

» MORE: Try NerdWallets pre-qualification tool to see what credit card offers you might qualify for without harm to your credit.

How New Card Applications Affect Your Score

Can You Pay One Credit Card off With Another?

Applying for a new credit card can affect your credit in several ways, both positively and negatively. On the plus side, opening a new account and maintaining it in good standing will add to your credit history. Also, having an additional line of credit will improve your debt-to-credit ratio overall , which will also benefit your credit score.

On the downside, each time you apply for a new credit card, an inquiry, sometimes called a hard pull, will be recorded on your credit history. If you have many recent credit inquiries, your credit score can suffer as the formula interprets this behavior as a potential indicator of future credit problems. The belief is that someone who is continually looking to receive new loans may be experiencing financial difficulties, even if the real reason is that you are trying to earn multiple sign-up bonuses. Thankfully, your score will not drop dramatically, and the damage will only be temporary.

Ultimately, your credit score may even rise when you open a new credit card account, especially if you have a limited credit history or were using more than 30% of your existing credit lines before you got the new card. However, anyone who incurs debt or misses payments as a direct result of opening too many credit cards has certainly made a mistake. You can see how many credit inquiries are affecting your credit scores as well as your debt-to-credit ratio by getting your free credit report summary on Credit.com.

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What Happens When You Apply For A Credit Card

New credit inquiries account for 10% of your credit score and stay on your credit report for two years.

While hard inquiries have a negative impact on your score, the effect you’ll see depends on the number of accounts you have and the length of your credit history. If you have a limited credit file, you’ll likely see a bigger impact. One hard inquiry results in a drop of less than five points for the typical consumer, according to FICO.

If your application is denied, lenders must tell you why and provide information on how to access your free credit report. It’s possible the lender determined you have too much debt compared to your current credit limit, that you don’t have a long enough credit history, or that you have too many missed or late payments.

Contact the lender if any of your circumstances have changed since you applied for the cardperhaps you paid off another balance or increased your income, for instance. Request that the lender reconsider your application. If the answer is still no, refer to your credit report and aim to address the negative information that may have contributed to your rejection.

How Long Should I Wait Between Credit Card Applications

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Waiting about six months between credit card applications can increase your chances of getting approved. Apply more frequently than that, and issuers may see you as a riskier bet and reject your application.

The exception? If you have excellent credit, a high income and a history of on-time payments, you can probably apply for new credit cards more frequently and still get approved. Thats because youre the kind of customer card issuers see as having a low risk of defaulting on future payments.

On the other hand, if your credit is average or worse, you might need to wait even longer between credit card applications possibly as a long as a year to increase your chances of approval.

» MORE: What is a credit score?

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Does Applying For A Credit Card Hurt Your Credit Score

Each time you apply for a card, the credit provider dives into your to see if youd be a good candidate. This process is often called a hard pull on your credit report. A small portion of your credit score is affected by how recently youve applied for a credit card.

Each hard pull on your credit report will knock off a few points from your score. This dip is temporary, usually disappearing in about 6-12 months. However, multiple inquiries into your personal credit within a short period of time can quickly add up and become more detrimental to your credit score. Each subsequent credit provider will see this score and gain the impression that youre a higher risk applicant, which would then likely cause them to reject your application.

Fortunately, the number of inquiries recorded on your credit report is only one of several factors considered.

Does my credit score still go down if my card application is accepted?

It doesnt matter if your application is rejected or accepted, your credit score will take the same hit. Again, this is temporary, lasting about 6-12 months. That means if you plan on applying for several types of loans, you might want to space out your applications.

Can You Apply For Two Credit Cards At Once

When To Apply For Your Next Credit Card?

At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our .

In this article:

Nothing is stopping you from applying for two or more credit cards in a short period of time, or even at the same time. But multiple credit card inquiries can hurt your credit score and raise a red flag for future creditors.

If you’re considering getting multiple credit cards, here’s what you need to know about how doing so could affect your credit.

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Should I Get A Second Credit Card

Chances are that you know someone with a wallet full of credit cards, but if youve been getting by with just one, you may wonder if theres a benefit to adding another card.

While multiple credit cards may not be right for everyone, you may consider these reasons for adding another credit card:

When Should I Apply For Another Credit Card

To decide whether it’s time to apply for another credit card, the most important consideration is your credit score.

If your score has improved since you got your last card, you may qualify for a card with rewards and benefits you couldn’t have before. Or if you’ve only been an on another person’s card, you might explore getting your own.

Applying for another credit card could also be worth it if your credit file is “thin” or an additional card could improve your credit utilization ratiothe credit you’re using relative to your overall credit limit. Here’s how to know when it’s time to apply, and when it could be better to wait.

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