How Long Should You Wait Between Applying For Credit Cards

Are you a credit card churner, always seeking the best promotional offers and rewards? Or maybe you're reconstructing your credit score, and you're wondering how long to wait between applying for credit cards to minimize damage? Either way, understanding the right timing for applying for multiple credit cards, and knowing the potential consequences, can save you future headaches. In this article, we'll explore just that—how long you should wait between applying for credit cards and why it's essential to space them out.

The Impact of Credit Inquiries on Your Credit Score

Before diving into the ideal timeline between credit card applications, it's essential to comprehend why the timing matters. When you apply for a credit card, the issuer will conduct a hard credit inquiry on your credit report. This inquiry has several effects:

• It temporarily lowers your credit score by a few points.
• It remains on your credit report for two years.
• It may impact your approval odds for future credit applications.

While one or two hard inquiries may have a minor effect on your overall credit score, multiple inquiries within a short timeframe can be detrimental. Credit card issuers may perceive you as a high-risk applicant, making them hesitant to grant you additional lines of credit.

Consider the 90-Day Rule for Credit Card Applications

As a general rule of thumb, experts recommend spacing your credit card applications at least 90 days apart. This waiting period gives your credit score ample time to bounce back from any temporary drops caused by hard inquiries. It also demonstrates to lenders that you can manage your current lines of credit without needing to rely on new cards frequently.

Exceptions to the 90-Day Rule

In some cases, a different waiting period may be more suitable. For instance:

• Rebuilding Credit: If you are in the process of reconstructing your credit, waiting even longer than 90 days between applications may be beneficial. This extended time will further minimize hard inquiries' impact and can lead to better approval odds down the road.
• Chasing Sign-Up Bonuses: If you're an experienced churner seeking new cards primarily for sign-up bonuses, you may consider more frequent applications. Be advised, though, that issuers are increasingly restricting sign-up bonus eligibility for those with too many recent credit card applications.

It's Also About the Issuer's Rules

Different credit card companies have their policies regarding the frequency of applications, and it's crucial to be aware of these limits:

• Chase 5/24 Rule: Chase will likely deny your application if you've opened five or more credit cards within the past 24 months.
• American Express: American Express typically only allows one credit card approval per rolling 5-day period, and no more than two within 90 days.
• Citi: Citi limits applications to one every eight days and no more than two within 65 days.

How Long Should You Wait Between Applying For Credit Cards Example:

Let's assume you have an excellent credit score and decide to apply for two new credit cards from different issuers. Following the 90-day rule, you apply for the first credit card and get approved. Ninety days later, you apply for the second card.

Your credit score may have dipped slightly with the first application, but it had enough time to recover before applying for the second card. By spacing these applications out, you haven't appeared risky to card issuers, thus maintaining your chances of future approvals.

Timing is everything, and applying for credit cards is no exception. By waiting at least 90 days between applications, you can minimize the impact of hard inquiries on your credit score and increase the chances of approval for future cards. Remember, a wise approach to managing credit can lead to great long-term rewards and financial stability. If you found this guide helpful, don't hesitate to share it with friends and explore other topics on Flik Eco for more valuable tips on personal finance and investing.