Does It Affect Your Credit When You Apply for Credit Cards?

When you apply for a credit card it may or may not affect your credit score. It all depends on the situation and circumstances. If you have an extensive credit file for 10 or 15 years your credit score will not be affected as much. The amount of creditors and the type of credit you have also plays a critical role in your credit score when you apply.

Number

If you apply for a credit card it can lower your credit score if you have applied for credit with a significant amount of other creditors in the same month. Every time you apply for a credit card an inquiry is left on your credit report. It would take about 10 to 15 inquiries in a single month to have an affect.

Credit Rejection

A credit card company can reject your credit application if you have too many inquiries. Each company has its own definition of "too many."

Time

Inquiries will remain on your credit file for 2 years and then they drop off automatically.
The longer an inquiry is on your credit file the less of an impact it will have on your credit score.

Limitations

If you apply for credit with one credit card company and you are denied it would be advisable to only apply to one more card company and not five or six. If you are denied by two there is a good chance you will be denied by others.

Applying

When you apply for a credit card with one company and you are denied you should wait five or six months before applying again. This will allow some time to pass and the inquiry won't have as large of a negative impact on your credit score.

Resources

• All about your credit and credit scores