Will my credit score be affected if I apply for a credit card?

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September 30th, 2011 - Posted by Tasha

Q: Will my credit score be affected if I apply for a credit card?

A: In general, if you already have a strong credit history and score, then applying for a new credit card shouldn't affect your score much (if at all).  It if does change, it would only be by a couple of points.

However it's important to know that whether your credit score is affected by applying for a new credit card depends on several factors. Most credit score agencies take 5 things into account when they are calculating your credit score; your payment history, the amount you owe, the length of your credit history, the type of credit you have and and new credit (learn more about how your credit score is calculated).

If you have a positive credit history, than applying for a credit card (which falls into to "new credit" bucket) shouldn't really affect your score. Just don't apply for too many credit cards in a short period of time, as this can be construed by the credit score companies as a need for money, and lower your score. It's best to do your research ahead of time and then apply for the credit card best for your situation.

If you don't have a positive credit history, than continually applying for new credit cards won't help your score. However, it may be that you also need to examine the other factors involved in calculating your credit score. For example, when your score is calculated the cumulative amount you owe is usually counted more than opening new lines of credit. If you are carrying a large balance on your cards, you can probably help your score more by paying this balance off than you can hurt your score by applying for one new credit card.

If your credit isn't the best you might want to consider a credit card for those with poor credit like the Household Bank Rewards Mastercard. It helps improve your credit history by reporting to all 3 credit bureaus every month so you can rebuild your credit, has a 0% introductory APR for the first 9 months and even earns users 2 points for every $1 spent. And since it's application process pre-qualifies users for either an unsecured or secured credit card, you are likely to be accepted. Or take a look at all our poor credit card reviews and choose a card that works for your situation.