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Will a Credit Card Application Hurt My Credit Score?


Your credit score is a three-digit number that's used by creditors and lenders to approve your applications. When you make a new credit card application, your credit score could be affected.

Ten percent (10%) of your credit score takes into account applications for credit. Each time you make an application, the creditor checks your credit to decide whether to approve you for the credit card. An inquiry is placed on your credit report and included in your credit score. The more credit card applications you put in, the more your credit score will drop.

Since new applications for credit is only 10% of your credit score, your credit score could stand to fall as much as 70 points if you have a 700 credit score. Of course, that depends on the other information in your credit report. Even if your credit score isn't hurt by the additional inquiries, creditors might deny your application simply because you've applied for several other cards recently. Too many recent applications can be perceived as desperation for credit and desperation is always a turn off.

The good news is that only credit inquiries made within the past 12 months are used to calculate your credit score. And 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.


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