How to Time Credit Applications to Avoid Credit Score Damage (Step-By-Step)

Have you ever thought: “I want a credit card, but every time I apply, I get turned down, and now my credit score is lower!” 

This is such a frustrating, yet all too common, complaint. To open a new account, you have to complete and submit an application. That prompts the issuer to notify the three major credit bureaus — Equifax, Experian, and TransUnion — which will then add a hard inquiry to your credit file. 

That inquiry will be included in your credit score, and not in a good way. Even one hard inquiry can lower your scores by a few points, but several in a short span of time can have a significant negative impact. 

So now you’re stuck? Not at all. Here’s how you can get a credit card even if your credit scores are low and without sacrificing too many credit score points in the process. This easy, step-by-step road map will put you on the path to success.

Step 1: Check Your Credit Score

Almost all lenders check credit scores to determine if you are eligible for a credit card. Certain cards require certain tiers of scores, so the last thing you want to do is pursue one that’s outside your range. 

If you do, all you will get for your trouble is an instant denial and a ding on your credit report. 

Therefore, begin your journey by knowing what your scores are today. Consumer credit scores are created only from the data listed on your credit reports, so your scores change when that information changes. 

They start at 300 and go upto 850, with higher numbers being preferable because they indicate less lending risk. 

Credit card issuers and other lenders often use FICO Scores (especially the latest version, the FICO Score 8). Here’s the range, from bottom to top: 

You can get your FICO Score 8 at no cost to you in a few ways. FICO offers a free plan that allows you to get your FICO Score 8, which is based on your Equifax file.

Experian also provides a free FICO Score, as do some credit issuers, including American Express, Citi, Wells Fargo, and Capital One. 

Credit card issuers and lenders may also use VantageScores, and you can get them for free from a variety of providers, such as Chase, US Bank, and OneMain Financial. 

No matter where you get them, checking your credit scores won’t impact your numbers. When you get them, you will have full knowledge about where you stand. 

Step 2: Identify Your Target Credit Tier

If you want to apply for a credit card right away, focus on the accounts that have the same credit requirements as your scores. 

Let’s say you have a FICO Score of 590, which puts you in the “fair” category. You wouldn’t seek a credit card that requires good or exceptional credit, because you almost certainly would be denied based on your score alone. 

Instead, look for a card designed specifically for people with fair credit or lower. For example:

• Credit rebuilder cards: These unsecured credit cards are meant for people who want to work their way up from subprime credit. They typically start out with very low credit limits, but after you charge and repay responsibly, they may increase the line.
• Secured credit cards: With these cards, you put money down as a deposit, and the credit line is typically equal to that security deposit. Qualification is relatively easy because the bank takes very little risk in lending you the money, since it can claim the deposit if you don’t pay the bill. 
• Store cards: Some credit cards that you can only use at a specific retailer do not require high credit scores. They can be a way to begin or repair a credit history. 

Not all issuers publish a description of the credit scores that are necessary for a specific card, so you may want to look for curated lists assembled by third-party researchers. 

Type in “best credit cards for (your tier) credit” and you’ll see which cards are currently available in your scoring range. These lists can definitely help narrow your search, enabling you to do side-by-side comparisons. 

Just remember, each card has its own attributes, from terms to rewards programs. 

Step 3: Take Advantage of Prequalification or Preapproval 

Once you identify the credit card you like and that seems to match your credit rating, you can go right to the application process. If the issuer offers a pre-approval process, though, I strongly suggest you take advantage of it first. 

A “pre-approval” tool is available on many issuers’ websites. It’s especially helpful for people who have subprime credit because fewer cards are available to them as opposed to people with excellent credit.

Using the online pre-approval form, you will enter such basic data as your name, date of birth, and income information. The credit card issuer will then do a preliminary review of your credit and financial circumstances. 

The issuer will probably notify the credit reporting agencies that it conducted a soft credit check, but that notation won’t be included in credit scoring algorithms. 

In a moment, you should find out if the card you want might be within reach, and at that stage, you may choose to apply. While qualification is not guaranteed, it definitely helps put you in the right direction. 

Also, keep in mind that credit scores are a major eligibility indicator, but credit issuers use other factors for qualification purposes. Your income will need to support the credit line, and some issuers stipulate that you can’t have certain information on your credit report at all, such as recent late payments or bankruptcies. 

Before you apply for real, take a moment to read any additional qualification terms for extra protection against unnecessary credit denials. 

Step 4: Understand the Rate Shopping Exception

It can seem like a smart strategy to apply to a bunch of credit cards that fit your scoring range all at the same time and then choose the one that offers you the best interest rate and benefits. If you want to preserve your credit scores, though, it’s not a good idea. 

Multiple credit card applications made in a short span of time can cause your credit scores to drop hard. To a credit issuer, it’s an indication that you may be desperate for money. And that means you may be a risky customer. 

Hard inquiries are a minor credit scoring consideration when compared to payment history and debt-to-credit-limit ratios, but when there are too many all at once, they can have an outsized impact. 

This is not the case for all credit products. Car loans and mortgages are treated very differently by the credit scoring companies. Lenders expect you to shop around for the best rate on these large financial obligations, so it doesn’t throw up a red flag. 

For older FICO Score versions, multiple home and car loan applications within 14 days are treated as one, while newer FICO Scores have a 45-day span. For a VantageScore, it’s all within 14 days. 

So feel free to shop around for a great home or vehicle loan, but be much more careful with your credit card applications. Focus on the one you really want and will most likely get. 

Step 5: Navigate Issuer-Specific Timing Rules

In an ideal world, you will find a terrific credit card, submit your application, and then be immediately accepted. Alas, that doesn’t always happen. Even with careful research and using pre-approval tools, you may be turned down for what you hoped was a sure thing. 

In that case, slow your roll before trying again. Many credit card issuers have policies about timing. Here are just a few examples: 

• American Express: If you were denied an American Express credit card due to your credit profile, it’s best to hold off on applying for any of its cards for at least 90 days. It usually won’t approve you for more than two credit cards in a consecutive 90-day period, too. 
• Chase: If you were approved for five or more new credit cards from any issuer in the past 24 months, there is a good chance Chase will automatically deny your application for one of its credit cards. 
• Citi: You may be approved for no more than two Citi cards in any continuous 65-day period. If you exceed that time-frame, expect a denial. 
• Capital One: You may only be approved for one Capital One credit card every six months. This issuer also typically restricts you to no more than two non-co-branded cards (those that aren’t associated with another company, such as an airline) at a time.  

No matter which credit issuer you hope to do business with, learning more about its unique timing policy can help you make a more informed application decision. 

Confused or concerned? Don’t be. You can always call the customer service number and ask the representative for insider guidance.  

My very general advice is to wait three to six months after being denied before you try with a credit card issuer again. This may be the perfect opportunity to hike up your scores by paying off other credit accounts on time or paying down existing debt, which can put you in a better position. 

Now, if you were rejected for a credit card that you think you really do qualify for, there is no harm in contacting the creditor again and asking for a reconsideration.

 A second look won’t affect your credit scores because it doesn’t trigger a hard inquiry. Who knows, maybe you listed the wrong income information on your application, and by fixing the mistake, you will be eligible after all. 

Timing is Key, So Make a Plan Before You Apply

Don’t let a credit card denial get you down. You can greatly increase the odds of future approval by sticking to these steps. Instead of randomly pursuing new accounts, create a plan that starts with knowing your credit scores and ends with timing your application approach.

Remember, too, that a credit card has to fit your lifestyle and circumstances. It’s a two-way street, so look for cards that match your needs. 

A secured credit card can be an easy entry point, but it won’t help if you don’t have any cash to set aside. An account that has amazing travel benefits will be irrelevant if you won’t be taking any trips in the future. 

In the end, all credit card issuers want good borrowers. Their aim isn’t to turn you away but to work with people who fit the criteria for a specific card and who are most likely to handle the account responsibly. 

Your job is to keep your credit scores as high as possible during the card-seeking process and apply for the right card for you.