Does it hurt your credit to apply for a new card?

Does Applying for a New Credit Card Hurt Your Credit?

Applying for a new credit card can have a small impact on your credit score. This is because when you apply for a card, lenders will typically pull a copy of your credit report, which can cause a minor temporary dip in your score. However, this dip is usually small and short-lived.

The more significant concern is not the act of applying for a new card, but rather how you use it once you have it. If you run up a large balance on your new card and don’t pay it off quickly, it can hurt your credit score. This is because your credit utilization ratio, which is the amount of credit you’re using compared to your total available credit, is a major factor in your credit score. A high credit utilization ratio can make you look like a risky borrower and lower your score.

So, while applying for a new credit card won’t necessarily hurt your credit, it’s important to use it responsibly if you want to avoid any negative consequences. Here are a few tips:

• Only apply for cards that you need and that you can afford to pay off each month.
• Keep your credit utilization ratio low by paying off your balances on time and in full.
• Check your credit report regularly and dispute any errors.

By following these tips, you can help protect your credit score and ensure that it doesn’t get hurt by applying for a new credit card.