What is the 90-Day Rule for Credit Cards?

The 90-Day Rule for Credit Cards: What You Need to Know

As a credit card expert, one of the most common questions I get asked is about the 90-day rule for credit cards. This rule can have a significant impact on yourcredit scoreand your ability to get approved for new credit cards, so it's important to understand it fully. In this article, I'll explain what the 90-day rule is, how it works, and what you can do to avoid running afoul of it.

What is the 90-Day Rule for Credit Cards?

The 90-day rule for credit cards is a guideline used by credit card issuers to determine whether or not to approve your application for a new credit card. Essentially, the rule states that if you have opened more than two credit card accounts within the past 90 days, your application for a new credit card may be denied. This is because opening multiple credit card accounts in a short period of time can signal to lenders that you are a high-risk borrower who may have trouble managing your debts.

How Does the 90-Day Rule Work?

When you apply for a new credit card, the credit card issuer will review your credit report and credit score to determine your creditworthiness. If you have opened more than two credit card accounts within the past 90 days, the issuer may see this as a red flag and deny your application. This can be frustrating, especially if you are trying to take advantage of a new credit card offer orrewards program.

How Can You Avoid Running Afoul of the 90-Day Rule?

The best way to avoid running afoul of the 90-day rule is to space out yourcredit card applications. Instead of applying for multiple credit cards within a short period of time, consider spacing out your applications by several months. This will give you time to build up a good track record of managing your debts and improve your credit score, which can increase your chances of being approved for new credit cards in the future.

Other Tips for Managing Your Credit Cards

In addition to spacing out your credit card applications, there are a few other tips you can follow to manage your credit cards effectively and avoid running into trouble:

- Pay your bills on time: Late payments can have a significant negative impact on your credit score, so make sure you pay your credit card bills on time every month.

- Keep your balances low: High credit card balances can also hurt your credit score, so try to keep your balances as low as possible.

- Avoid annual fees: Many credit cards come with annual fees, which can add up over time. Look for credit cards with no annual fee to save money.

- Be careful withbalance transfers: While balance transfers can be a useful tool for managing your debts, they can also come with hidden fees and high interest rates. Make sure you understand the terms of any balance transfer offer before you accept it.

- Consider a rewards program: If you use your credit card regularly, consider signing up for a rewards program to earn cash back, points, or miles. Just be sure to choose a program that matches your spending habits and offers rewards that you will actually use.

Conclusion

The 90-day rule for credit cards can be confusing, but it's an important factor to consider if you are applying for new credit cards. By spacing out your applications and following these other tips for managing your credit cards effectively, you can improve your credit score, save money, and avoid running into trouble with your credit card accounts.