Applying for a credit card affect credit score

New/Rebuilding Under(579) Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

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Fair/New to Credit Under(669) Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Credit Rating Requirement:

Fair/New to Credit Under(669) Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

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Written by

Steve Bucci

Written by Steve Bucci

Steve Bucci

Edited by

Liliana Hall

Edited by Liliana HallArrow RightAssociate Editor

Liliana is an editor and journalist with a background in feature writing on the Bankrate Credit Cards team.

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Liliana Hall

Reviewed by

Emily Sherman

Reviewed by Emily ShermanArrow RightSenior Editor, Credit Card Product News

Emily Sherman is a senior editor for CreditCards.com and Bankrate Credit Cards, specializing in product news and recommendations. She has worked as a writer and editor in the credit cards space for several years, covering any and all topics related to how cards work, rewards programs, card benefits, travel, cash back and more.

Opening, or simply applying for, a new credit card can temporarily ding your credit score. But getting a new card can also come with a few advantages for your credit, such as raising your credit limit. Here’s what to know.

How applying for a credit card can hurt your credit

When a card issuer looks at your credit information because you’ve applied for a credit card, it is a so-called hard pull. That can lead to a slight drop in your credit score, whether you are approved or not. A hard pull, or hard inquiry, stops impacting your credit score in a year or less, but it stays on your credit report for about two years.

Know how your credit is scored

See your free score and the factors that influence it, plus insights into ways to keep building.

How opening a new credit card can hurt your credit

Applying for a new card can cause your score to slip a bit, but getting a new card can result in a bigger drop if you use a lot of that new line of credit. Or if you have only one or two other cards, and they are only a few years old.

Here’s how opening a new card might hurt your credit:

A new credit card might hurt your score if you make a big purchase or get a balance-transfer card and transfer your higher-interest debt to the card so that you have high credit utilization. The amount of your credit limit that you use is weighted heavily. Credit utilization is calculated both per-card and overall.

Experts recommend going no higher than 30% on any card, and lower is better.

However, it’s smart to look at overall finances, not just your credit score. Accepting a drop in your score due to high credit utilization because you got a 0% balance transfer card deal to pay off debt may be worth it.

Lower average age of accounts

How long you’ve had credit also affects your score. Your new card can reduce the average age of your credit. If you have few credit cards, it will have a bigger impact than if you have many.

Length of credit history, however, is a relatively minor factor in credit scores. It counts as 15% of your FICO score. VantageScore, another credit score provider, lists “depth of credit,” the age of your credit accounts, as making up 21% of your VantageScore 3.0 score.

How opening a new card can help your credit

A new line of credit can also help your credit profile.

Paying on time, every time is essential for good credit. FICO, the credit score used most for credit decisions, says payment history accounts for 35% of credit score. Competitor VantageScore says it makes up 40% of your 3.0 score.

If you’re trying to build credit, nothing is more important than consistent, on-time payments. A new account gives you another opportunity to build up a record of on-time payments.

More room on credit cards

A new card will increase your overall credit limit. If your spending stays the same, your overall credit utilization will be lower, and that could help your score.

Credit scores award points for showing you can manage more than one type of credit. If you have an installment loan but do not have an existing credit card, successfully managing your new credit card is likely to help. But if you already have several credit cards, adding one more is not as likely to have much of an impact.

How much does your credit score drop when you apply for a card?

Does applying for credit cards hurt your credit score?