When you open a new credit card account, it can have several effects on your credit score.
First, the credit issuer will check your credit score and report when you apply for the account — this hard inquiry can cause the score to drop by a few points temporarily.
Does applying for a credit card hurt my credit?
Yes, applying for credit hurts your credit score, but it’s usually a small hit, and it won’t drag you down for long. This is because applying for new credit results in a hard inquiry on your credit report, and credit scores view hard inquiries as a slightly negative bit of credit history.
Is it better to cancel unused credit cards or keep them?
Closing unused credit card accounts may sound like a good idea, but it could hurt your credit score because of increased utilization and, eventually, shorter credit history.
Why did my credit score drop after getting a credit card?
A number of factors can cause your credit scores to drop. High credit card utilization, late payments and hard inquiries are just a few issues that can impact your credit health.
Is it bad to open a lot of credit cards?
While there can be negative aspects to owning multiple cards besides just your credit score (more on that in a bit), generally speaking, your credit score won’t go down just because you have several cards—unless you’re opening and closing a bunch of cards at once (“churning” cards), which is not a good idea.