If You Get a New Credit Card, How Long Should You Wait to Apply for Another?

There is a high level of competition in the credit card industry, and there are dozens of appealing credit card products available. And while the topic of how many credit cards you need is a separate issue, it's common for people to wonder whether they can apply for more than one credit card at a time.

The short answer is yes, you can apply for one credit card immediately after applying for another. But there's a little more to unpack. Here's what you need to know about the time you might need to wait between credit card applications, and how it could affect your credit score.

How long do you have to wait to apply for another card?

Technically, you don't have to wait any length of time between credit card applications. If you wanted to, you could apply for a dozen different credit cards on the same day, and if you have a high credit score, you could potentially get approved for all of them.

In practice, there is little reason to fill out credit card applications in massive quantities, but there are some situations where multiple applications in a short time can make sense. For example, when my wife and I bought our first home, I applied for a credit card that was cobranded with my favorite furniture store, as well as a Home Depot credit card, on the same day.

The only limiting factor is likely to be restrictions from each individual credit issuer. For example, multiple sources have found that American Express doesn't allow more than two card applications within a 90-day period. Capital One is especially restrictive, reportedly limiting customers to one new credit card every six months and no more than two personal credit card accounts open at a time.

Credit score impacts

Regardless of how long you need to wait before applying for another credit card, it's important to realize how multiple new credit cards can impact your FICO® Score. There are five categories of information that make up your FICO® Score, and opening new credit cards can adversely affect two of them.

First and more obvious, there's the "new credit" category, which has a 10% weighting in the FICO formula. This considers the number of recently opened accounts on your credit, as well as the number of credit applications (inquiries) you make, regardless of whether a new account was opened. While a single credit inquiry is unlikely to drop your score by more than a few points, several applications in a short time frame can have quite a negative impact.

Second, there's the "length of credit history" category, with a slightly higher weight of 15%. This category considers several time-related factors, including the ages of your individual accounts, the average age of all of your accounts, and more. And the general rule is that a longer history is better for your credit score. By adding several new credit cards to the mix, your average account age would decrease, thus causing a ding to your credit score.

How long should you wait between credit card applications?

Every situation is different. As mentioned, there could be valid reasons to apply for two or three credit cards in the same day, especially if you achieve a major life milestone like buying a home. But as a general rule, plan ahead and aim to space out your credit card applications as much as you can, while still meeting your financial goals.