Does Opening a New Credit Card Hurt Your Credit Score?

Does Applying For a New Credit Card Hurt Your Credit?

A new credit card will cause a small, and temporary, dip in your credit score at first. To come out ahead: only apply if you’re likely to qualify, keep spending the same and pay your bill on time each month.

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Edited by other Updated Jul 2, 2026 What Factors Affect Your Credit Scores? 7 Ways to Rebuild Credit Got debt? How making a partial payment can hurt your credit score Does Closing a Credit Card Hurt Your Credit Score? Yes, it's true — opening, or simply applying for, a new credit card can cause a brief drop to your credit score. That’s because when you apply, the lender checks your credit report to decide whether to approve you. This check is called a hard inquiry (or “hard pull”) and its effects on your credit are temporary. But getting a new card can also come with a few advantages for your credit, such as raising your available credit. Here’s what to know.

Does applying for a credit card hurt your credit?

Yes, but just briefly. When a card issuer looks at your credit information because you’ve applied for a credit card, it is a hard inquiry. This peek into your credit file by the lender can lead to a slight drop in your credit score, whether you are approved or not. A new inquiry typically takes less than five points off your FICO scores, according to FICO. The stronger your credit score, the less likely your score will be impacted by a credit application. The impact of a hard inquiry on your credit score fades over time — likely after six months — while the record of the inquiry remains on your credit reports for two years. To review which lenders have made hard or soft inquiries into your credit file, request your free weekly credit reports from AnnualCreditReport.com or directly from the three major credit bureaus: Experian, Equifax and TransUnion. 💡 Pre-approvals typically only require a soft inquiry, which doesn't affect your score. Soft inquiries are used for non-credit related inquiries like background checks or loan pre-approvals.

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Why does applying for a credit card hurt your score?

Hard inquiries on your credit file show that you’re seeking new credit. These inquiries are interpreted by FICO and VantageScore as a sign that you might be in financial distress or engaging in risky behavior. The small point penalty to your score reflects that view. Your score can drop more if you apply for several cards or loans in a short time. 💡To protect your score, try to space out applications — NerdWallet suggests waiting about six months between them.

Before you apply for a credit card

Consider these factors: Whether your application is approved or denied makes little difference to your score. That’s why it pays to be almost certain you will qualify before applying. Don’t risk losing points without getting the credit you wanted. Whether your application is approved or denied makes little difference to your score. Your starting point affects the impact of the application: For example, someone with a high credit score and a long history of on-time payments is unlikely to lose as many points as someone with a lower score and less-than-perfect track record. Your starting point affects the impact of the application: The credit score dip is temporary. If you're planning to apply for a bigger loan, like a car or mortgage, hold off on other credit applications for at least six months beforehand so your score can bounce back. The credit score dip is temporary. » See how applying could affect your score with our free credit score simulator on the NerdWallet app » See how applying could affect your score with our free credit score simulator on the NerdWallet app

Pros and cons of opening a new credit card

Opening a new credit card isn’t all good or bad for your credit score — it depends on how you use it. Here are the key pros and cons to weigh before you apply.

Pros

Build credit through on-time payments, added available credit and responsible use.

Increase available credit that lowers your utilization ratio.

Improve credit mix or adds variety if you only have loans or a few accounts.

Earn rewards, like access to cash back, points or travel perks.

Cons

Temporary dip in credit score due to hard inquiry.

Shorter credit history, because the new account lowers the average age of your accounts.

Temptation to overspend, which can lead to unmanageable debt.

Higher interest costs if you carry a balance month-to-month.

Annual fees, if you apply for a credit card.

How opening a new card can help your credit

It can give you a better track record

Paying on time, every time is essential for good credit. Payment history accounts for 35% of FICO credit scores, the ones most commonly used in credit decisions. Competitor VantageScore says it makes up 40% of your 3.0 score. If you’re trying to build credit, nothing is more important than consistent, on-time payments. A new account gives you another opportunity to build up a record of on-time payments.

It gives you more room on credit cards

A new card will increase your overall credit limit. If your spending stays the same, your overall credit utilization will be lower, and that could help your score.

It can create credit diversity

Credit scores award points for showing you can manage more than one type of credit. If you have an installment loan but do not have an existing credit card, successfully managing your new credit card is likely to help. But if you already have several credit cards, adding one more is not as likely to have much of an impact. » See our picks for the best credit cards » See our picks

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Not all credit factors are equal. The longer the bar, the more it influences your score — payment history leads the pack, while new applications carry the least weight.

How opening a new credit card can hurt your credit

It can lead to higher balances

Your score can drop if you use too much of your newly available credit. This causes your credit utilization to spike. Experts recommend going no higher than 30% on any card, and lower is better.

It may lower the average age of your accounts

Getting a new card can also negatively impact your score if you have a limited credit history. Because a big part of your credit score is how long you’ve had credit, a new account lowers your average account age, which can cause a drop to your score. Length of credit history makes up 15% of your FICO score. VantageScore weights “depth of credit” more heavily — 21% — making it the second most important factor in your VantageScore 3.0 calculation. Why am I suddenly getting tons of marketing messages after a credit application? When you apply for a credit product that involves a hard inquiry on your credit, you may get an influx of marketing messages from lenders. This happens because credit bureaus sell marketing lists triggered by hard inquiries. But you can opt out, either permanently or for five years. Visit OptOutPreScreen.com, a service of credit bureaus Equifax, Experian, TransUnion and Innovis, or call 888-567-8688. The bureaus say your request will be effective within five days. Note that you may still receive marketing offers from lenders that use other sources. Opting out does not affect your credit score or your ability to apply for credit or insurance. Explore more on About the authors Schwahn Lauren Schwahn is a writer at NerdWallet who covers credit scoring, debt, budgeting and money-saving strategies. She contributed to the "Millennial Money" column for The Associated Press and managed a team of writers producing content for the series. Her work has also been featured by USA Today, MSN, The Washington Post and more. Lauren has a bachelor’s degree in history from the University of California, Santa Cruz. She is based in San Francisco. Published in O'Shea Bev O'Shea is a former NerdWallet authority on consumer credit, scams and identity theft. She holds a bachelor's degree in journalism from Auburn University and a master's in education from Georgia State University. Before coming to NerdWallet, she worked for daily newspapers, MSN Money and Credit.com. Her work has appeared in The New York Times, The Washington Post, the Los Angeles Times, MarketWatch, USA Today, MSN Money and elsewhere. Twitter: @BeverlyOShea. 7 Ways to Rebuild Credit By Bev O'Shea, Amanda Barroso, Lauren Schwahn How to Build Credit From Scratch at Any Age By Amanda Barroso Credit Score Ranges: What They Mean and How They Work By Amanda Barroso, Lauren Schwahn How to Calculate Your Credit Utilization Ratio By Amanda Barroso What Is a Good Credit Score and How Do I Get One? By Amanda Barroso, Lauren Schwahn