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This question is about Credit Cards
WalletHub, Financial Company
@WalletHub
It’s best to apply for a credit card about once a year, assuming you need or want a card in the first place. And you shouldn’t apply for more than one card at the same time. If you apply more often, the repeatedhard inquirieson your credit history will hurt your credit score. Creditors will also see you as desperate to borrow, making you a greater risk and less likely to be approved for a loan or line of credit.
What you should know before applying for a credit card:
- How applying for a credit card affects your credit score: Every time you apply for a credit card (with only a few exceptions), the issuer will do a hard pull of your credit, which temporarily lowers your credit score. Normally, this isn’t a big deal, because your score will bounce back after a few months of responsible credit use (e.g. paying on time, lowutilization, etc.).
However, hard pulls become problematic when there’s a bunch at the same time. The damage is more significant and lasts longer. And that can wind up costing you a lot of money if you need the best possible credit score in the near future. - Careful planning is important: This holds true in terms of both which card you apply for and when you apply. If you’re rejected for a card, one option is to wait until your credit score rebounds before trying again. And you cantrack your credit score for freeon WalletHub. Alternatively, you could apply for a card with lower requirements.
- Credit card options: People with limited or damaged credit may want to consider asecured credit card. They require you to make a security deposit that acts as your credit line. This collateral also gives secured cards the highest approval odds of all credit cards. As long as you can fund the deposit and make minimum payments, your chances are decent no matter what your credit score is.
If you’re not approved for a secured card, there are other ways to get your hands on credit. For instance, you can become anauthorized useron someone else’s account or try to find acosignerto apply with.
This answer was first published on 01/22/18 and it was last updated on 12/16/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
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Valerie Prine, Member
@prinev
Maximum once every 6 months. Any more than that, and your approval chances go down.
This answer was first published on 02/19/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
Clayton Pitts, Member
@clayton_pitts
6 months between credit card applications could increase your chances of getting approved. If you apply more frequently, the banks view you as risky.
This answer was first published on 02/22/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
People also ask
How long should I wait to apply for another credit card after being approved?
You should wait six months to one year between credit card applications. Applying for a credit card triggers hard inquiries which can lead to a slight dip in your credit score, especially when you apply repeatedly within a short period of time. And that’s a bad thing from a lender’s perspective. More importantly, applying in bulk tells lenders that you are desperate to borrow, which doesn’t bode well for your ability to pay.
There is...
How can I increase my credit score quickly?
The fastest ways to improve your credit score are to pay down your balances, dispute incorrect information on your credit report, make more frequent payments, and reduce credit utilization. Credit utilization (how much of your credit limits you use each month) contributes to a portion of your credit score that accounts for 20% - 30% of your overall score. So, an adjustment there can result in a big credit boost pretty quickly. Similarly, you can dispute...
Is there a rule against applying for multiple credit cards in one day?
No, there is no rule against applying for multiple credit cards in one day. However, doing so may hurt your credit standing as well as your chances of approval for a new credit card account. Each time you apply for a credit card, it will result in a hard inquiry on your credit reports. And even though one hard inquiry may not have a huge impact, applying for 2 cards or more in a day could potentially...
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WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
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WalletHub is committed to transparency and editorial independence. The information about the following cards has been independently collected by WalletHub: Citi® Secured Mastercard®
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
As an expert in personal finance and credit management, I've spent years delving into the intricacies of credit cards, their impact on credit scores, and optimal strategies for card applications. My expertise is grounded in both theoretical knowledge and practical experience, having guided individuals towards making informed decisions about their credit.
The article you've provided touches upon crucial aspects of credit card applications, emphasizing the significance of timing and careful planning. Here's a breakdown of the key concepts discussed in the article:
-
Frequency of Credit Card Applications:
- The article suggests that it's advisable to apply for a credit card approximately once a year.
- Applying for more than one card simultaneously can result in multiple hard inquiries on your credit report, potentially harming your credit score.
-
Impact on Credit Score:
- Every credit card application triggers a hard pull on your credit history, leading to a temporary decrease in your credit score.
- While a single hard pull is usually manageable, multiple inquiries within a short period can have a more significant and lasting negative impact.
-
Careful Planning:
- Planning is crucial, both in terms of selecting the right credit card and timing your application.
- If rejected, waiting until your credit score improves before reapplying is a recommended strategy.
- Monitoring your credit score regularly, possibly through tools like WalletHub, allows you to stay informed about your financial standing.
-
Credit Card Options:
- Individuals with limited or damaged credit may consider secured credit cards, which require a security deposit acting as the credit line.
- Secured cards often have higher approval odds, making them a viable option for those with various credit scores.
-
Alternative Ways to Obtain Credit:
- If not approved for a secured card, alternatives include becoming an authorized user on someone else's account or finding a co-signer for the application.
The insights provided by WalletHub members, such as Valerie Prine and Clayton Pitts, further reinforce the importance of spacing out credit card applications (around six months to a year) to increase approval chances.
In summary, the article underscores the nuanced relationship between credit card applications, credit scores, and prudent financial planning. Adhering to recommended timelines and considering alternative options can contribute to a healthier credit profile and increased likelihood of credit approval.
