How Often Can I Apply For Credit Cards?

April 9, 2011 - Rick

The question of the day seems to be:
I applied for a Chase card in December and February and really want the 100,000 miles from the British airways card. Can I apply for this and expect success?

Here is an email I just got:

“Hey Rick, just a follow-up from our previous emails.

My girlfriend applied for the Chase Continental credit card two weeks ago and was accepted/received her card this past Saturday. She then applied for the Chase British Airways credit card yesterday and was denied. She called Chase today and they simply lowered her Chase Continental credit line and then approved her for the British Airways card.

So it looks like you can apply for and receive both of these cards within a short time period after all! Might be helpful to some of your other readers who are wondering the same!

Thanks again for your help!

Scott”

This proves that the Chase six-month rule is bunk. I knew it was, as I got five cards in six months from Chase. But here is the same result from another reader. You need high scores and few inquiries and the ability to lower the limits on your existing cards with the same card issuer, or be willing to close an older account. Your Mileage May Vary, but don’t believe that six-month rule line you get on the phone sometimes.

Every inquiry costs your credit score two to five points. That’s the amount you’re risking. If you are denied for a card, it does not go on your report as a negative factor. There is no drop in your score for a credit card denial.

This offer is large enough that if you aren’t sure of the outcome, it may still be worth the try, particularly if you have another Chase credit card you can cancel to earn the approval. Don’t cancel anything before applying. Wait until you get the denial if you do and then call the reconsideration phone number.

Reader emails are really providing valuable information to you, the readers. Several days ago we heard an example of a Premier Rewards credit card producing another sign-up bonus in the short term. Last month another reader email indicated that a Platinum Card from American Express, closed at least two years, could be applied for again and the new application would produce the points. I personally verified that one with my account at two years and three days since I closed my first Platinum Card.

This British Airways card has plenty of positives as a long term card for many people. It can be a terrific compliment to those carrying the Starwood Preferred Guest American Express credit card where Amex is not accepted.

1.25 miles per dollar spent
$30,000 spend to earn a free companion pass
No foreign transaction fees

I wish I hadn’t closed mine this year. Although I am not a fan of the fuel surcharges that British Airways charges on awards using their own metal to Europe, there are plenty of other options for using the miles with OneWorld partners. I also wish the companion pass provision was good on all OneWorld partners, but that is way too much to expect.

BTW: The 100,000 frequent flier mile offer is scheduled to last until May 6th.

Ted

Currently, one can only transfer Amtrak miles to Continental miles. How would that play out after the merger with United? I would hold off on that card until the merger is complete or Amtrak clarifies.
Anonymous

32,000 miles opening bonus for Amtrak here:

http://www.mychasecreditcards.com/amtrak/smt32/?CELL=67F5

You have to spend $200/yr. on Amtrak tickets to transfer miles from them but can buy a $200 ticket and get a refund.

Recent blog about how cheap a cabin is on Amtrak on the scenic western routes. 10K each way I think cross country.
Arpita S

Rookie Tip:

Always check out the credit score and inquiries on your credit report before applying for a new card. There are some free trials that rick features from time to time. However, one needs to cancel these trials in order to ensure that there is no charge.

So, it is better to enroll in two totally free services: 1) creditkarma.com shows your transunion credit report and FAKO score. 2) Quizzle shows your Experian credit report and FAKO score.

You can update your your creditkarma score as frequently as you wish. You can update your Quizzle score twice in a year.

Arpita S
Angik S

Rookie Tip: How to improve credit score.

There is another aspect of having a free Amex as your first card. As long as your keep that Amex, all other Amex cards that you apply for will be shown on your credit report as being opened along with your first Amex card. That increases the average age of your credit lines and vastly improves scores.

For example, say you applied for a Hilton Amex in 2010. Subsequently you apply for a SPG Amex in 2011, Amex Blue Cash in 2012. All of these will show up on your credit report as being opened in 2010. Voila! your average age of credit lines improve.

Angik S
Anonymous

Rick,

Did you say an expedited Chinese Visa service for an American into mainland China?

Try the Chinese Embassy.
Anonymous

Tx Angik for the Amex trick.

To all: How many no annual fee cards do you recommend keeping for ever?

ATN
chemist661

Nice article! Well written!

I like Angik's comment about AMEX. In addition to their own AMEX, if one has a parent/relative, etc with a very ancient AMEX (say opened years ago w/positive history), have them add you as an additional cardholder. They even don't have to give you the physical card, you just want their positive history to reflect on your report and increase the FICO's.
Anonymous

Rick,

I am reading on some blogs that the credit scores purchased from MyFico.com are not the same as the scores that retailers/lenders see when they check your scores directly from Fair Isaac.

Do you have any information whether this is true or not?
Anonymous

Can't wait for thew new layout because your blog is starting to look really bad with so many advertisements all over the place (there has to be 30+ banner ads on your page).

I get that most of the deals posted on here are credit card churning, but I would think that you should also disclose some information:

1) For "rookies", you should probably state that you are getting a commission if they use the banner ad of the deal you are promoting. Just seems ethical to state that you are getting something out of the cards even though you are giving your honest opinion that signing up for a card is a great deal.

2) Even though the BA card can net you 100,000 when you go to redeem the miles for international travel do they not have very large fuel surcharges?
Aaron R

Anon: BA has high fuel charges if using BA metal (if it is a BA-operated flight). Also if flying through the UK. However, BA miles can be redeemed for travel on any Oneworld Alliance carrier – AA, Iberia, Malev, Royal Jordanian, etc. These have much lower/no fuel surcharges. However, you'll need to book them far in advance because availability tends to fill up fast.
Anonymous

It is not the deepest feedback, but "every legal US citizen" should probably be "every US citizen or "every legal US resident", whichever is meant, because there is no such thing as an illegal citizen.
Anonymous

Rick, have a question regarding cards and cancelation.
I'm following your blog for the last 5 months and like it very much. Thanks for doing this. I applied for the Amex Plat in Feb and so far all seems fine. Still waiting for the 50K bonus though (according to amex will take 3 to 4 months). I am now considering the BA offer for the 100K. But as I don't need that many credit cards (especially with fees attached), would you think it is ok to cancel this card once the first year is over ? What would it do to the credit report when this card is canceled. My credit report was dinged 12 points with the Amex Plat (but as it was over 800 anyway, not a prob). What would you think is best ?

Thanks
F
Anonymous

I'm with Anonymous:

This blog is looking more and more like an old AOL or Geocities site — it's starting to become unbearable to navigate, despite the often useful content. Enough with the banner ads all over the place! My recollection is that, when I first started reading this blog, you'd frequently refer to the top travel deals, but they'd be listed on the right side of the page. Now, there's a banner ad (or three) after EVERY post, as well as as a ridiculously long list down the right-hand side. We get it: The more banner ads there are, the more money/miles you make, but the site is progressing quickly towards being unusable — at least for old-timers who remember how it was.
Miles

Shannon's "Know your Credit score" pargraph might lead some to believe that you can get your FICO score free every year at AnnualCreditReport.com.

There has been talk about this, but I don't believe it is true at present. You can see your credit reports from all three agencies every year (best to check one every 4 months), but not your FICO or "FAKO" (Fake, approximate FICO) scores.
FrugalTravelGuy

Anon: I wonder why it is always Anon that is critical and never anybody will to sign their name??? Anyway I agree it is loaded with banners this week as we try to get people to realize we have an offer out there for 100,000 miles. That will drop off next week. And some of the ads will be removed as all indications are that ads with small offers for hotel points and annual fees, are just not of interest to readers.

And to top it all off, hopefully we will be on the new WordPress format tomorrow and that will clean the site up again. Thanks for the comments. Constructive criticism is always welcome.
FrugalTravelGuy

Anon and Anon: Thanks again for the comments on the number of ads. I just double checked and last month there were six credit cards that nobody even clicked on. Those ads are gone now. If it gets out of line again, remind me and I'll double check what people are looking for and remove unwanted cards.

Thanks
ez005799

I think these comments about you need to keep reminding people that you make money on the links on your page are just ridiculous. Just as US courts have determined that leaving a voice mail is equal to giving consent to being recorded since it is common knowledge that your voice is being recorded, so is the fact that free websites only make money by having users click through advertisers links.
Rick provides this fantastic site updated every day (sometimes a little repetitive but better than I could do) and does not charge a membership fee. Information is not free or if it is you get what you pay for. There is only one free lunch out there and that’s buying coins from the mint, and Rick tells us about this and doesn’t charge us a dime.
Anonymous

To ez005799…

Wait 'til you find out how clicking those ad links apply to tax avoidance…

How Often Can I Apply For Credit Cards?

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