Get exclusive money-saving offers and guides
Straight to your inbox
By signing up, you agree to the Finder
Privacy & Cookies Policy
and
Terms of Use, Disclaimer & Privacy Policy.
Is it ok to change credit cards frequently?
You shouldn't apply for multiple credit cards at once but there are benefits to switching.
Card Types
Credit Cards Tips
- Best Balance Transfers
The most competitive 0% p.a. credit card offers of 2020.
- Card Finder Quiz
Not sure what type of card is right for you? Take our quick quiz.
- 60 Second Approval
Get an instant answer on your credit card application.
- Free Credit Score
Get your credit score and report for free through Finder.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
When you apply for a credit card, it's noted on your credit report as an enquiry. If you apply for several credit cards in a short time period, this can be a red flag for lenders and can hurt your credit score. However, switching credit cards each year can be a good way to take advantage of competitive deals. This is especially true with credit cards that offer bonus frequent flyer points, 0% balance transfers and promotional purchase rates. So, how often can you change for credit cards?
You can use this guide to learn how multiple credit card applications can impact your credit score and how often you should be applying for a new credit card.
How often can you change credit cards?
There's no hard and fast rule to how many credit cards you can apply for in a set period of time. However, you should only apply for one credit card at a time. All credit applications (whether approved or not) are recorded on your credit report. When lenders are reviewing your credit report, multiple applications for credit in a short time period may be considered a red flag.
Instead, you may only want to apply for a new credit card once a year or every couple of months. How often you should apply for a credit card also depends on your current financial situation and credit score. If you have multiple credit cards and debt, you may want to consider consolidating them under one new card with a balance transfer.
Before you apply for a credit card, you should also check your credit score. Australian lenders will only approve applicants who meet the eligibility criteria and have a good or excellent credit score. You can check your credit score for free online through Finder.
As long as you keep your accounts in good standing, make timely repayments and check your credit score regularly, applying for a new credit card every year isn't necessarily a bad thing. If you're no longer using your old card, you may want to consider closing the account once you've activated your new card.
Check out our guide to applying for a credit card for some tips and the eligibility criteria to check.
Free credit score & report
Lenders know your credit score, so why shouldn't you?
Get your credit score and comprehensive report now!
Benefits of switching credit cards
- Bonus points. Some rewards cards and frequent flyer cards offer up to 120,000 bonus points on sign-up when you meet the spend requirements. As long as the requirements align with your budget, a bonus points offer can be an easy way to boost your points balance.
- 0% balance transfer. If you’re struggling to repay an existing debt that is attracting interest, you may want to transfer your debt to a card that charges 0% interest rate on balance transfers. These cards usually offer interest-free periods for introductory periods between 6 to 26 months. At the end of the promotional period, any remaining debt from the balance transfer will attract the revert rate.
- 0% purchase rate. If you're using your card to make purchases, you can save by switching to a card that charges a low interest rate or 0% interest for promotional period. If the card charges 0% for an introductory period, the standard purchase interest rate will apply once the promotion ends.
- Competitive fees. If you're paying a high annual fee, maybe you'll want to switch to a card that charges $0 annual fee for life or for the first year.
Rather than applying for multiple credit cards at once, you should take the time to compare your options, understand the features and ensure you meet the eligibility requirements before you apply.
If you’ve applied for a credit card and have been rejected, you should wait at least a few months before applying for another. During this time, you should repay existing debts, improve your credit score and research credit card that you're eligible for.
See our guide for more information on why your credit card application might’ve been declined and what you can do to improve your likelihood of approval.
Compare current credit card offers
*The credit card offers on this page are chosen from a range of credit cards available to us and are not representative of all the products available in the market. The use of the terms "best" and "top" are not product ratings and are subject to our disclaimer. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
Images: Getty
Back to top
More guides on Finder
-
PayActiv Earned Wage Access
Learn more about how PayActiv's Earned Wage Access service can help you access up to $500 of your paycheque for a $5 fee charged fortnightly (only if you access your wage before payday).
-
Afterpay hangover? Beware of impact on home loan approval
Off the back of Christmas spending, a finance expert has warned that your Afterpay habits could negatively impact your home loan application.
-
Economy “improving”, but 1 in 4 still panicked about paying bills
New research shows that economists are positive our economy is improving, but 1 in 4 Aussies are worried about paying their mortgage or rent.
-
MoneyMe Freestyle Virtual Mastercard
Get $250 credit back when you meet the eligibility requirements and 55 days interest-free on purchases.
-
0% Balance Transfer Credit Card Offers
Pay no interest on your credit card debt and clear it faster with a 0% balance transfer credit card. Compare and apply here.
-
How to start a mobile app business
Learn the key considerations when it comes to starting and growing your smartphone app company.
-
How to start a network engineering business
Here's how to use your IT skills to start your own network engineering business.
-
How to start a landscaping business
How to start your landscaping business from the ground up.
-
How to start a financial auditing business
Love working with numbers and helping businesses? Here’s how to start a financial auditing firm.
-
How to start a mechanic business
Learn how you can get started on your journey to a profitable career as a mechanic.
Ask an Expert
