Can I apply for more than one credit card?

If you're wondering if you can apply for more than one credit card, the simple answer is yes. Having more than one credit card is fairly common. 

The question of whether you should apply for more than one credit card, though, is worth careful consideration. 

There are a few factors to consider when deciding whether to apply for more than one credit card. Firstly, whether you’re able to manage additional cards, and secondly, the effect multiple credit card applications can have on your credit report. Let's take you through all you need to know, and how to balance what you need against how it works. 

A quick intro to how the credit card application process works

When applying for a credit card in the UK, you'll need to provide basic personal information like your name, age, proof of address, and proof of income. 

After you submit your application, the credit card issuer will conduct a credit application search—or a hard check—on your credit report. Also known as a “hard search”, these checks are used to confirm your details and importantly, assess how well you’ve managed credit in the past.

A reliable source of income, a favourable credit score, and a positive credit history all increase your likelihood of being approved for credit. In some cases, like when you apply online, this check and approval can be almost instantaneous. In others, if the lender wants to take a closer look at your report because of any flagged issues, you might have to submit additional information and wait up to 10 days for final approval.

Do I need more than one credit card?

It’s not uncommon to have more than one credit card—multiple cards not only increase your access to credit but also offer various benefits. There are several reasons you may want more than one card, like increasing your available credit limit or perks and rewards. However, there are considerations to make when having more than one card, so it’s important to weigh the pros and cons carefully before making a decision.

Here’s what you need to know.

The pros of having more than one credit card

• Improving your credit score. Having more than one credit card can help your credit score as long as the repayments are well managed. It shows you’re able to borrow reliably and helps you build positive credit history.

• More perks and rewards. Having multiple credit cards can give you access to different perks and rewards. For example, some credit cards might allow you an interest-free period, benefits on travel or cash back on grocery purchases. Balance transfer credit cards can be a useful way to consolidate all your debt (or borrowing) under one card, which may have a lower interest rate. So, having more than one card can help you secure multiple benefits. 

• More available credit. More than one card means more available credit, allowing you to keep your credit utilisation rate lower. Your credit utilisation rate is the amount of credit you actually use, compared to the amount of credit you have available (i.e your credit limit), and is written as a percentage. For example, if you have a credit card with a limit of £2k and you’ve borrowed £200, your credit utilisation rate would be 10%. A credit utilisation rate between 10-30% is generally considered ideal, which means using up to 30% of the available credit on a card at any one time. Having more cards (and being able to manage them wisely) means you could have more available credit to draw from reducing the likelihood of going over this recommended credit utilisation rate. 

The drawbacks of having multiple credit cards

• Managing multiple credit cards can be more difficult. Having more than one credit card increases the chances you could miss a payment whether by mistake or necessity. Negative payment markers from missed, late, or defaulted payments will remain on your credit report for six years and will have a negative effect on your credit score. 

• Lenders may perceive more risk. When you have multiple credit cards, lenders may factor in the total amount you could borrow if you maxed out all your current credit. If they determine that repaying this amount is beyond your means, they might not approve additional credit.

• More cards can mean more fees. If you don’t pay the balance in full each month, the interest and admin fees for each card can add up. So if you do decide to use multiple cards, it’s important to be mindful about making your payments and limiting added fees.

Should I apply for more than one credit card at a time?

In theory, applying for more than one credit card at a time could increase your chances of getting credit and if you want more than one credit card for the benefits, applying for multiple at once may seem like a good idea. However, there are potential drawbacks to sending multiple credit card applications in a short period, including: 

• Missed opportunities to strengthen future applications. If you send in multiple applications at the same time and get refused, you’ll have missed the chance to learn from the outcomes and strengthen your position before the next application. Spacing out your applications gives you time to make any necessary improvements before applying for another card.

• Impacting your credit score. When you apply for a credit card, lenders conduct application checks, which are recorded on your credit report and are visible to other lenders for up to two years. While the result of these checks (i.e. credit approval or denial) won't be noted on your report, having too many in a short time frame can signal financial difficulty or even trigger a fraud warning. It can also affect your credit score and the likelihood of getting credit in the future.

However, by making sure you’re fully informed, you can give yourself the best chance of credit approval. If you want more than one credit card, the following steps can help you secure them in a responsible way. 

How to give yourself the best chance of credit approval:

• Find the right card(s). Investigating cards before applying helps you tailor your applications to ones that best suit your needs (e.g. one with supermarket rewards or travel perks). Some lenders won’t approve you for a new credit card if you’ve applied for another in the last 30 days, and others might restrict the number of cards they green-light per customer. So researching your options thoroughly means you can prioritise cards that are most appropriate for you. 

• Use an eligibility checker or pre qualification tool. Many banks offer eligibility checkers online, which can give you an idea of your likelihood of being approved without affecting your credit score. These checkers use “soft checks” which, unlike hard checks, don’t impact your credit score. Using these checkers before applying helps you choose cards that you’re more likely to be accepted for.

• Monitor your credit report. Lenders perform “hard checks” on your credit report as part of the application process—which reveal all the information on your report—to help understand how responsible you are as a borrower. So monitoring your credit report to make sure your information is up-to-date and an accurate reflection of your current status, as well as knowing if you have anything potentially negative present, can help you increase your likelihood of being accepted. At Checkmyfile, we break down up to six years of credit history into one simple-to-use, independent and highly confidential review. Here, you can understand your habits, pinpoint patterns and spot any errors that could be impacting your overall credit health — without affecting your score. Get started now

• Consider spreading new card applications out. Since having too many hard checks in a short period can impact your credit score, spacing your applications out to around 10-12 a year, or roughly one a month, means the hard searches caused by credit applications are less likely to have an impact. 

• Limit how many applications you send annually. It’s beneficial to keep credit applications to around 10-12 per year. Too many hard credit check searches in a short period of time can signal to lenders either that you’ve taken on a lot of new credit, or that you’ve been declined frequently, both of which might make them more wary of approving you for additional credit. 

Similarly, if you’re applying for a large amount of credit in the near future, such as a mortgage, it's best to avoid new credit applications in the run-up to submitting your application. This is because lenders typically consider your other financial commitments when deciding whether to approve you for more credit. So, in the case of a mortgage, they’ll want to be sure that you can afford the monthly mortgage repayments. However, recent hard searches can suggest newly opened forms of credit and as this is typically not reported until 4-6 weeks after the account has been opened, it could raise uncertainty about how much credit you may have been granted that they can't take into consideration.  

Remember, new credit cards will also lower the average age of your accounts and a higher average age is usually linked to higher credit scores. So if you already have one credit card, and need extra credit, you could explore other methods such as seeing if your lender can increase your existing credit limit before applying for and opening another card unnecessarily. 

The takeaway 

Having more than one credit card is both possible and common. If you’re planning to apply for more than one card, it’s important to identify and prioritise cards that you’re more likely to be approved for and can manage well. Spreading your applications out can help avoid them negatively impacting your credit score.