Will a Credit Card Application Hurt My Credit Score? A credit score is a three-digit number for approving or denying your credit card applications by financial institutions.Will a Credit Card Application Hurt My Credit Score

Will a Credit Card Application Hurt My Credit Score?  What Happens When You Apply for a Credit Card

Credit card issuers review your credit history to approve your application. They want to know how responsibly you manage debt, the number of accounts you have open, whether you’ve paid on time or have serious delinquencies, and the balance you’re carrying across your credit cards and loans. This information is from your credit report. Instead of completely reviewing your credit report, the creditors just get your credit score and use it to evaluate your creditworthiness. However, 10%  of your credit score is based on the number of inquiries into your credit history within the past 12 months.

Will a Credit Card Application Hurt My Credit Score? How Applications Affect Your Credit Score

Since new applications for credit is 10% of your credit score. However, applying for a lot of credit cards within a short period of time is bad. The other information in your credit report also matters greatly. Excessive applications within a short period make you look like a spendthrift. You may look like you just want all the sign-up bonuses.

How Long Will the Application Count Against You?

However, it is important to note that only credit inquiries made within the past 12 months are used to calculate your credit score. After 24 months, the inquiries fall off your credit report completely. That time limit only applies to credit inquiries. Other negative credit report information will remain on your credit report for longer.

Why Apply for a Credit Card If It Can Hurt Your Credit Score?

Applying for a credit card can negatively affect your credit score. Avoid making new applications if you’re preparing for a major loan like a mortgage or auto loan, especially within the next 6 to 12 months.

If you use your credit card and your other financial accounts responsibly, your credit score will improve. Even though your credit score can be affected by a new credit card application, there’s no guarantee that will happen.

When you handle your new and existing credit obligations wisely, your credit score will not be badly affected by new credit card applications.