How many points does it take off your credit to apply for a credit card?

Applying for a Credit Card and Its Impact on Your Credit Score

When applying for a credit card, it’s important to understand the potential impact on your credit score. Applying for new credit triggers a hard inquiry, which is recorded on your credit report and can affect your score.

Is It a Significant Impact?

While a hard inquiry can have a negative impact, it is typically minor. According to FICO, the leading credit score provider, applying for a credit card generally results in a reduction of less than five points. This may seem like a lot, but it’s important to keep in mind that this impact is temporary.

How Long Does It Last?

Hard inquiries typically stay on your credit report for two years, but their impact on your score diminishes over time. Responsible credit management, such as making timely payments and keeping your credit utilization low, can help your score recover quickly.

Other Factors to Consider

In addition to the number of points off your credit score, there are other factors to consider when applying for a credit card:

• Your Credit History: Lenders will consider your overall credit history, including your payment history, credit utilization, and the length of your credit accounts.
• The Credit Card You Apply For: Some credit cards, such as rewards cards or balance transfer cards, may have higher approval requirements and may impact your score more significantly.
• Multiple Applications: Applying for multiple credit cards in a short period can increase the negative impact on your score, as it suggests you may be overextending yourself.

Tips to Minimize the Impact

To minimize the impact on your credit score when applying for a credit card:

• Only apply for credit when necessary.
• Be selective about the credit cards you apply for.
• Space out your applications by several months or years.
• Monitor your credit report regularly to track the impact of any hard inquiries.

Remember, applying for a credit card can have a temporary impact on your credit score. By understanding the process and managing your credit responsibly, you can minimize the negative impact and maintain a healthy credit score.