In general, it’s better to space out credit card applications rather than apply for multiple cards at once. Each application can result in a hard credit inquiry, and opening several new accounts in a short period can affect your credit score.
Multiple applications can also make it harder to earn credit card welcome bonuses. If each card requires you to spend thousands of dollars within the first few months, you could risk overspending or missing out on a bonus altogether.
That doesn’t mean you should only have one credit card. Having multiple credit cards can be useful for maximizing rewards and increasing your available credit, as long as you can manage each account responsibly.
Table of Contents
Key takeaways
-
Applying for multiple credit cards in a short period can temporarily hurt your credit score.
-
Unlike some mortgage, auto, and student loan inquiries, multiple credit card applications aren’t grouped together as a single inquiry for rate-shopping purposes.
-
Opening several cards at once can lower the average age of your credit accounts.
-
Multiple welcome bonuses can require significant spending within a short period, making them harder to earn without overspending.
-
Having multiple credit cards isn’t necessarily bad for your credit if you manage them responsibly.
Should you apply for multiple credit cards at the same time?
Generally, it’s better to apply for one credit card at a time and leave some time between applications. Every credit card application can result in a hard inquiry on your credit report. Opening several new accounts within a short period can also reduce the average age of your accounts.
There’s another practical consideration: If you’re applying for rewards cards, opening several at once could leave you juggling multiple welcome bonus spending requirements, annual fees, and payment due dates. Here’s a closer look at the potential downsides.
Multiple hard inquiries can affect your credit score
“New credit” accounts for about 10% of a FICO Score. When you apply for a credit card, the issuer typically performs a hard credit inquiry, which can cause a small, temporary drop in your score.
Hard inquiries can remain on your credit report for up to two years, although FICO Scores only consider inquiries from the previous 12 months.
Unlike rate shopping for certain mortgages, auto loans, and student loans, multiple credit card applications aren’t generally treated as a single inquiry. That means applying for several cards within a short period can result in several separate hard inquiries.
Opening several new credit accounts quickly can also signal greater credit risk to lenders.
New cards can reduce the average age of your accounts
Length of credit history accounts for about 15% of a FICO Score. FICO considers factors including the age of your oldest account, your newest account, and the average age of your credit accounts. Opening a new credit card can lower your average account age, and opening several at once can lower it further.
The impact depends on your overall credit profile. Someone with a long, established credit history may be affected differently than someone with a relatively short credit history.
You could miss out on welcome bonuses
One of the biggest reasons to open a new rewards credit card is the opportunity to earn a welcome bonus. But these offers typically require you to spend a certain amount within a limited time.
Opening several cards simultaneously may mean you need to meet multiple spending requirements at once. For example, say you open one card offering 60,000 points after you spend $4,000 in the first three months and another offering 75,000 points after you spend $4,000 in the first three months.
You’d need to charge $8,000 in three months — about $2,667 per month — to earn both bonuses.
If that amount is higher than your normal spending, chasing both bonuses could encourage you to spend more than you otherwise would. And if you don’t meet a card’s spending requirement by the deadline, you could miss out on its bonus entirely.
Spacing out your applications can make it easier to meet each spending requirement through purchases you would have made anyway.
How long should you wait between credit card applications?
There isn’t a required waiting period between credit card applications. The right timing depends on your credit history, how recently you’ve applied for other credit, and the requirements of the card issuer. Some issuers also have their own application or eligibility rules that may limit how frequently you can open new cards or qualify for welcome bonuses.
If you’ve recently opened a credit card, waiting before submitting another application can give your credit profile time to recover from the hard inquiry and new account. It can also make it easier to finish earning one welcome bonus before taking on another spending requirement.
What happens if you apply for multiple credit cards in one day?
If you apply for multiple credit cards in one day, each application can result in a separate hard inquiry on your credit report.
Submitting the applications on the same day doesn’t generally combine them into a single inquiry. And if you’re approved for multiple cards, you’ll also have several new accounts added to your credit history.
The exact effect on your credit score varies depending on your credit profile, so there’s no set number of points you should expect your score to fall.
What should you do if your credit card application is denied?
If your credit card application is denied, consider finding out why before immediately applying for another card. Another application can result in another hard inquiry without addressing whatever caused the first issuer to reject your application.
Creditors are required to provide the principal reasons for denying your application or tell you how to obtain those reasons. Review the denial notice and your credit reports for issues that may have contributed to the decision, such as high balances or inaccurate information.
Before applying for another card, you can also check whether an issuer offers prequalification or preapproval. These tools commonly use a soft credit inquiry, which doesn’t affect your credit score, although prequalifying doesn’t guarantee you’ll ultimately be approved.
Is it bad to have multiple credit cards?
No. Having multiple credit cards isn’t inherently bad for your credit. The more important question is whether you can manage them responsibly.
Multiple credit cards can help you maximize rewards across different types of spending. For example, you might use an airline credit card for flights and travel perks while using a cash-back card for everyday expenses such as groceries and gas.
Having additional available credit can also affect your credit utilization ratio. But that benefit can disappear if having more cards causes you to take on more debt.
Multiple cards may not be a good fit if you have trouble keeping track of balances and due dates, or if having access to more credit encourages you to overspend. Credit card interest and late fees can quickly outweigh the value of any rewards you earn.
FAQs
Does applying for multiple credit cards hurt your credit?
It can. Each credit card application can result in a hard inquiry, which may temporarily lower your credit score. Opening multiple accounts can also reduce the average age of your credit history.
Can you apply for two credit cards at the same time?
Yes, you can apply for two credit cards at the same time, but each application is generally evaluated separately and can result in its own hard credit inquiry. Applying for two cards also means potentially managing two new accounts and two welcome bonus requirements at once.
How many credit cards can you apply for at once?
There’s no universal limit on the number of credit cards you can apply for at once. However, individual issuers may have their own application and eligibility restrictions, and applying for several cards within a short period can affect your credit.
Do multiple credit card applications count as one hard inquiry?
Generally, no. Credit card applications don’t receive the same rate-shopping treatment that FICO provides for certain mortgage, auto, and student loan inquiries. Each credit card application can result in a separate hard inquiry.
How many credit cards should you have?
There’s no ideal number of credit cards for everyone. The right number is the number you can manage responsibly while paying your bills on time and avoiding unnecessary debt. Some people can benefit from having several cards for different rewards or benefits, while others may be better off with one or two.
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
