Is It Ok To Get Two Credit Cards From the Same Bank?
Most major credit card issuers have several credit card options, often with different types of perks. A single credit card issuer may have low interest rate credit cards, balance transfer credit cards, credit cards with miles rewards, credit cards with cash rewards, or credit cards that reward with points.
You may want to get a new credit card from a bank that you already have a credit card with them, especially if you're interested in churning for credit card rewards. But will your card issuer approve your application for another credit card even though you already have one with them?
You’re in luck. Many credit card issuers will indeed approve you for another one of their credit cards as long as you meet the qualification criteria. And, if you’ve always managed your current credit card well, that may make it easier for you to get approved for the new credit card.
Getting Another Credit Card From the Same Credit Card Issuer
Don’t assume that you’ll get approved for the exact same terms as your current credit card. The credit card issuer will approve your application based on your current income and credit standing. You could get approved for a higher interest rate and lower credit limit. Or, you could also get approved for a lower interest rate and a higher credit limit.
Two credit cards from the same bank may have different payment due dates, so it’s important that you pay attention to both due dates. And, you need to submit payment for each credit card separately, making sure to including the account number on your check and payment coupon from your statement in the envelope if you’re mailing your payment. If you make your credit card payments online, you’ll have to select each account separately to make a payment.
The minimum payment amounts may be different for both of your credit cards, especially if you have different balances and different interest rates. Pay close attention to the payments you’re making for each account and be sure you’re paying the right amount for the right account.
What You Should Watch Out For
No balance transfer options.
Unfortunately, you (generally) won’t be able to transfer balances between credit cards from the same bank. Banks typically offer balance transfer promotions because they’re trying to get you to move your balances from another bank. So if it’s a great balance transfer deal you’re looking for, you’ll want to apply for a credit card with another bank.
Penalties carry over to all credit cards from the same issuer.
Having two credit cards from the same credit card issuer can be risky. If you default on the payments on one credit card and trigger the penalty rate, you may receive the penalty rate on the other credit card, too, even if your payments with that credit card were always on time. But late fees only apply to the credit card for which the payment was late.
Once the penalty rate is effective, it may apply to your new credit card purchases indefinitely.
Limited ability to earn signup bonuses.
If you're interested in another credit card from your credit card issuer because you want to earn the signup bonus, read the terms of the credit card rewards program before applying for the credit card. You may not be able to earn a signup bonus on a new credit card, especially if you've already earned a signup bonus from that credit card issuer. Some credit card issuers only allow cardholders to earn a signup bonus once every two years. Others may only allow cardholders to earn a single signup bonus ever.
Chase, for example, recently adopted the unofficial 5/24 rule and may not approve you if you've opened more than five credit cards within the past 24 months.
Managing Multiple Credit Cards
Of course, whether you’re getting multiple credit cards from the same credit card issuer or multiple credit cards from different credit card issuers, it’s important to be sure you’re not taking on more credit cards than you can handle. If you’re struggling with your current credit card payments or all your current credit cards are maxed out, it may not be a good idea to put in another credit card application with any credit card issuer.