Anonymous
Anonymous asked in Business & FinanceCredit · 1 month ago

Will Opening New Credit Card Hurt My Credit Score?

My current TransUnion credit score is 697. I have an excellent payment history on my car loan and my other credit card which has a $500 limit. I've had it 6 months.

I got approved for the Discover card with a limit of $2250. I am trying to improve my credit score.

Will opening this new card hurt my score?

3 Answers

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  • 1 month ago

    New inquiries can have a short term hit to your credit.  Having a larger credit limit which you don't carry a balance on will help your credit score going forward (assuming your combined limits are way out of line with your income.)  

    Note that if you really are approved, and not 'pre-approved', then they've already done a hard inquiry to your credit per your permission so that short-term damage has already occurred.  

    Personally, I would get the card, use it every few months for small purchases, and pay it off 100% before the due date.

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  • 1 month ago

    My recent score is 838.  I have now and have had for years one credit card only.  But I pay it off automatically each month, so the balance is typically very low.  And all the big ticket items (e.g., house and cars) have been paid off long ago.  The limit on the card is $50,000, I had it raised, because I use it to pay for big ticket items like world-wide vacation trips.

    Such a high score can only come after years and years of maintaining good credit.  But my point is that I don't see any advantage in having a second card if you are doing it to raise your credit score.  The only advantage that I can see it that the second card can be used as a backup if you lose the first one.  And there is a disadvantage in that you might be tempted to pay off the first card by using the second card.  Going into debt to erase a debt is never...never...a good idea.

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  • Robert
    Lv 7
    1 month ago

    There is a formula they used based upon your salary and the amount of debt you have.  Every new inquiry can lower your score for short time, but the score will return if you don't ever default or make late payments, but it will fluctuate with the amount of credit you have outstanding with consideration of your income.

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