Double Duty Daddy

How Credit Card Applications Impact Your Credit

As someone who relies primarily on credit cards to fund vacations for my family, I’m constantly monitoring my credit score through Credit Karma and Credit Sesame. Almost instantly after I apply for a new credit card, the hard inquiry on my credit from the credit card issuer appears on the mentioned websites and I can see which company, Experian, Equifax or Transunion, they pulled from.

Inquiries do factor into overall credit scores, but it’s a small portion of the bigger picture – and it’s often smaller than many people realize. The FICO® Score which is what is commonly referred to as “your credit score”, is based on calculations of your overall credit history. It takes into account the amount of money you owe, your payment history, how long you’ve been using credit, the types of credit you use and recent credit activity.

I’m asked often, “how does opening a new credit card impact my credit score?” The simple and quick answer is, you’ll get dinged a few points but after a few months of making payments in full and on time, your score will go back up. I recently applied for the Discover it® Card and here’s what happened with my credit score:

5% cash back that doubles in first year


A few minutes after my application was approved, I checked my credit karma account and saw the hard credit inquiry from Discover.


I noticed my credit score went down by 6 points to 782: 



Despite the decline in my score, I’m not fazed one bit because I know with a few months of on-time full balance payments, I’ll be back up to 788, probably higher.


My credit score ranged in between 770-788 in the last 4 months


It’s important to keep in mind, your credit score aka FICO® Score will vary depending on which credit bureau you’re looking at. Typically the variation won’t be more than 20-30 point difference between bureaus.


You can guesstimate your credit score by taking the scores of all 3 credit bureaus and finding the average.


Conclusion: Opening up a new credit card comes with a fear connotation for most people. It’s all about educating yourself and understanding your credit, how it works and what makes up your score. Responsible management of credit cards can not only open up a plethora of rewards but also help your long-term credit health.



Like this Article? Share it!

Leave A Response