People usually apply for credit cards one at a time, and with plenty of time between applications. If you have a couple cards you like, and especially if they have limited-time bonus offers, you might consider applying for multiple credit cards at once. There are pros and cons to doing this. Read on to decide if you should give it a try.
Reasons to apply for multiple credit cards at once
The most common reasons to apply for multiple credit cards at once are:
- To earn more sign-up bonuses
- To earn more purchase rewards
- To boost your available credit
These can all be good reasons, especially with how easy it is to apply for a credit card online. To see if any of them make sense for you, let's learn more about each one.
Earning more sign-up bonuses
Sign-up bonuses are introductory credit card bonus offers available to new cardholders. For example, some cards offer a $200 cash bonus if you spend $500 in the first three months. These are one of the most valuable credit card benefits, but the best ones are often only available for a limited time.
Rewards enthusiasts sometimes decide to open multiple cards with bonuses simultaneously. Why limit yourself to one bonus if you can get two or more? This also ensures you snag limited-time bonuses before they expire.
The key here is to make sure you can meet all the bonus requirements. If each bonus has a separate spending minimum, add those up and see if your regular spending will be enough.
Earning more purchase rewards
Rewards credit cards earn some type of reward on your purchases. Depending on the card, rewards can be cash back, points, or miles.
Many of these cards earn a higher rewards rate in bonus categories, like groceries or dining. Others earn a flat rate, such as 2%, on purchases across all spending categories.
If you don't mind keeping track of which cards to use for different purchases, combining rewards cards can be a great way to save more money. Instead of just applying for one type of credit card, you could get a grocery card, a dining card, plus a flat-rate card to use everywhere else.
Boost your available credit
Every time you're approved for a credit card account, that's a new line of credit you can use. If you get approved for two new cards, each with a $1,000 credit limit, you have $2,000 more in spending power.
This can be a good or a bad thing. On the one hand, you need to be careful not to spend more because of that additional credit. Otherwise, you risk ending up in credit card debt.
Having more credit can be helpful if you have lots of monthly bills and you've been getting close to your credit limit. Another benefit of more credit is that it can help your credit utilization ratio, an important factor in your credit score.
READ MORE: What Is a Credit Utilization Ratio?
Risks of applying for multiple credit cards at once
The biggest risks of applying for multiple credit cards at once are:
- The applications will lower your credit score.
- It can lead to credit card debt.
- You could have trouble managing your credit cards.
Here's more information on each one so you can decide if they're worth worrying about.
The applications will lower your credit score
A credit card application has a small impact on your credit score. Each application puts a hard credit check (also known as a hard credit inquiry) on your credit history. It usually only takes off a few points at most, but multiple credit inquiries can add up to a larger amount.
Each new credit card also lowers your average account age. This is another factor that affects your credit score. If you have one credit card account that's five years old, and then you add three new cards, that's going to lower the average age of your accounts quite a bit.
There may not be a big impact, especially if you already have good credit or excellent credit. For some anecdotal evidence, I once applied for six credit card offers in a day because of the cash bonuses they were offering. My credit score only dropped by nine points.
READ MORE: Does Applying for a Credit Card Hurt Your Credit Score?
It can lead to credit card debt
Some people are tempted to spend more when they have credit cards. Because you don't need to pay them off right away, it's easier to convince yourself to make purchases you can't quite afford. And when you have several credit cards, all with plenty of available credit, it can be even more dangerous.
The best way to avoid issues here is to follow a budget. If you're sure you can do that, then the number of credit cards you have won't be an issue. But if you think you might start spending more if you have too many credit cards, then it's better to stick to one.
You could have trouble managing your credit cards
The more credit cards you have, the harder it is to manage all of them. There's a bigger chance of missing a due date, not having enough in your bank account to cover a payment, or forgetting about the requirements for a bonus.
However, it's not impossible. Plenty of people comfortably manage many different credit cards. There are also ways to simplify it, like setting up autopay and making a spreadsheet with all the bonuses you're working toward. What's important is finding the right number of cards for you.
READ MORE: How Many Credit Cards Should I Have?
Should you apply for multiple credit cards at once?
Applying for multiple credit cards at once can be a good idea in certain situations. Here are the most important requirements if you're going to do it:
- You have a high credit score. Since applying for multiple cards can affect your credit, I recommend only doing it if you have a credit score of 720 or higher. That way, a small drop in your credit score won't be a problem.
- You pay your credit card bills in full. It's best not to carry balances on your credit cards. Only get multiple cards if you know you'll be paying off the full balances every month.
- You don't need to apply for a loan in the next year. Lenders are more likely to deny your application or charge a higher interest rate if you have multiple credit card applications on your credit report. If you're planning to get a car loan or a mortgage in the near future, be very selective about credit card applications.
If you can check all those boxes, then you may want to apply for a few of the best credit cards instead of just one.
READ MORE: How to Apply for a Credit Card (and Get Approved)
FAQs
Yes, you can apply for two credit cards on the same day. There's no rule limiting how many credit cards you apply for.
Some credit card companies have their own restrictions and will only let you apply for one of their cards within a set amount of time. If you're planning to apply for two cards from the same card issuer, check first to see if it has any rules like this.
Yes, you can apply for two credit cards in one week. Consumers can apply for as many credit cards as they want.
A credit card issuer could have its own rules about the number of cards you can get within a certain timeframe. If you want to get two credit cards from the same company, learn about its rules first.
As a general rule, wait at least three to six months between credit card applications. By waiting this long, the applications shouldn't have too much of an impact on your credit score. If you're working on earning an introductory bonus, you may want to wait until you've done that before applying for a new credit card offer.
It's not always necessary to wait this long between credit card applications. If you're confident you can manage multiple new credit cards, there could be times when it makes sense to apply for different cards at once or within a short period of time.
