The question of whether you can apply for more than one credit card at a time seems to be a very simple one. The answer is yes. But… there are many different things to take into consideration. How many credit cards can you apply for without it affecting your credit score too much? How much damage do applications actually do to your score? How can you find the best credit card for you without applying for multiple ones?
The Wisdom of Applying for No More than Two Credit Cards at Once
Most of the prevailing wisdom concerning credit cards today is that you need to have at least one major credit card. Having two is even more useful as occasionally you will come across businesses that only accept one type of card. You may also lose one or run into problems with it and having a second credit card is helpful in such situations. In fact, many people have multiple credit cards.
If you are applying for credit cards, you would do well to limit the number of cards you apply for at any one time to two. This is not to ensure that you get the recommended number of cards in your wallet. It is to ensure that you do not negatively affect your credit rating too much with the application process.
If you apply for two credit cards and are turned down for them, you can be sure that practically any other ordinary credit card that you apply for will also be refused. Applying for two credit cards will ensure that it is not simply a human error or an out-of-the-ordinary guideline that caused you to be turned down. If this happens to you, it is best to stop applying for credit cards and take the time to improve your credit score before trying again. Alternatively, you may want to look into getting a high risk bad credit credit card or a secured credit card.
Even if you are getting approved for the credit cards you apply for, applying for multiple cards will catch up to you. Each credit card you get approval for goes on your credit report, and whether or not you use the card, the fact that you have that credit accessible to you will be taken into consideration for your debt ratio.
This may affect whether or not you can get a mortgage, car loan or other type of loan in the future. In addition, as you get approved for credit card after credit card, sooner or later you will get turned down on the basis of having too much available credit based on your income. Being denied a credit card will further damage your credit score at least in the short term.
How Credit Card Applications Affect Your Credit
Credit card applications will definitely affect your credit at least in some small measure. If you have good credit and a steady, decent income, you will find that applying for a few credit cards will make little difference to your score. However, if you have an average or worse credit or a lower income or irregular income, you should expect your credit score to significantly go down if you apply for multiple credit cards all at once. In addition, the more cards you apply for the more damage you are doing to your credit rating.
If you only apply for 2-3 credit cards at one time then even if you have a less than great credit score you will see your credit score decrease temporarily but it won’t decrease too significantly.
When credit card issuers pull your credit report and see that there are multiple credit card applications at once, they see it as a sign that you could be desperate for credit. They are then much more likely to turn you down. Multiple credit card applications are not seen as shopping around for the best deal, the way multiple mortgage applications or multiple car loan applications are. Therefore you should be careful to apply for only the credit cards you actually want and make no more than two or at the most three credit card applications at once.
The Alternative to Applying for Multiple Credit Cards at Once
If you are in the market for a new credit card, there is an alternative to applying for multiple credit cards in the hope of finding and getting approved for the right one. Use our free online credit card chaser tool, to help you find the right credit card for your needs. By answering a few questions, the chaser will be able to find the cards that best fit your needs. Not every credit card is equal and not every one is for you. See your best options presented in an easy to compare format now by using the credit card chaser tool. Get started finding your best credit card now!
- Does applying for a credit card affect my credit?
- Where can I apply for credit cards?
- What information do I need to provide to apply for a credit card?
- Is it easy to apply online for credit cards?
- Are there any department store credit cards that approve poor credit?
- What are the benefits of applying for online decision credit cards?
- How many credit cards are too many to own?