Opening a credit card does lower your score temporarily, but the damage is usually small and fades within a few months
When you open a new credit card, two things happen to your credit score right away. First, the card issuer runs a hard inquiry — a check of your credit report that typically drops your score by 5 to 10 points. Second, your new account lowers your average age of accounts, which can drop your score another 5 to 15 points depending on how old your other cards are. The total hit is usually between 10 and 25 points.
The good news is that this damage is temporary. Hard inquiries stop affecting your score after about three months and disappear from your report entirely after two years. The new account itself ages like any other account — after six months to a year of on-time payments, the score recovery is usually complete. If you already have a strong credit history, the dip may be barely noticeable.
Key Takeaways
- A hard inquiry from a new card process typically lowers your score by 5 to 10 points, and this effect fades within three months.
- Opening the account itself lowers your average account age, which can drop your score another 5 to 15 points but recovers as the account ages.
- The total temporary damage is usually 10 to 25 points, and most of it is recovered within six to twelve months of responsible use.
- Multiple card applications within a short period cause multiple hard inquiries and can damage your score more significantly than a single process.
- Keeping your new card open and using it responsibly will eventually improve your score more than the initial dip harmed it.
Why a hard inquiry lowers your score
When you submit a credit card process, the issuer requests your full credit report from one or more of the three major bureaus — Equifax, Experian, or TransUnion. This request is called a hard inquiry (or hard pull). It signals to credit scoring models that you are seeking new credit, which lenders interpret as a sign of financial stress or increased risk.
Hard inquiries make up about 10 percent of your credit score. A single inquiry typically costs 5 to 10 points, though the exact amount varies by scoring model and your current score. If your score is already low, the percentage impact may be larger. The inquiry stays on your report for two years but stops affecting your score after about three months.
Soft inquiries — the kind you trigger when you check your own credit or when a company pre-screens you for an offer — do not lower your score at all. Only applications for new credit trigger hard inquiries.
How a new account changes your average account age
Your average age of accounts makes up about 15 percent of your credit score. It is calculated by adding up the age of every account you have and dividing by the number of accounts. When you open a new card with an age of zero months, it pulls down that average.
If you have five cards that are all five years old, your average age is five years. When you open a sixth card, your average age drops to about 4.2 years. This shift can lower your score by 5 to 15 points depending on how many accounts you have and how old they are. The newer your existing accounts, the bigger the impact.
The good news is that this penalty reverses automatically. Your new card ages one month every month. After six months, it is no longer dragging down your average as much. After a year or two, the impact is usually gone entirely.
When opening multiple cards in a short time causes real damage
Opening one card is a small, temporary hit. Opening three cards in three months is a different story. Each process triggers a separate hard inquiry, so three applications mean three inquiries on your report at the same time. That can drop your score by 30 to 75 points or more.
Multiple applications also signal to lenders that you are actively seeking credit, which raises red flags. If you are denied for a card and when ready explore for another, or if you explore for several cards in quick succession, future lenders may see you as higher-risk. Some issuers will deny you outright if you have too many recent inquiries.
If you need multiple cards — for example, to meet spending requirements for sign-up bonuses — space your applications out by at least two to three months. This gives each hard inquiry time to age and reduces the appearance of desperation to lenders.
How responsible use recovers your score faster
The fastest way to recover from the score hit is to use your new card responsibly and keep it open. Every on-time payment adds positive history to your credit report. After six months of on-time payments, most of the damage from the hard inquiry and new account is reversed.
Your payment history makes up 35 percent of your credit score — the largest single factor. A new card with a clean payment record starts building this positive history when ready. Within a year, the benefits of that positive history usually outweigh the initial damage from opening the account.
Avoid the temptation to close the card after you have used it. Closing an account removes it from your active account count, which can lower your score again. Keep the card open and use it occasionally — even a small purchase every few months is enough to keep the account active.
How credit utilization affects your score when you open a new card
Credit utilization — the percentage of your available credit that you are using — makes up 30 percent of your credit score. When you open a new card, your total available credit increases, which usually lowers your utilization ratio and improves your score.
For example, if you have two cards with $5,000 limits each and you are carrying a $4,000 balance, your utilization is 40 percent. When you open a third card with a $5,000 limit, your total available credit jumps to $15,000, and your utilization drops to about 27 percent. This improvement can offset some or all of the damage from the hard inquiry and new account.
This benefit only applies if you do not increase your spending on the new card. If you open a card and when ready charge $5,000 to it, you have not improved your utilization — you have just spread your debt across more accounts.
What to do if you need a card but are worried about your score
If your score is already low or you are about to explore for a mortgage or car loan, opening a new credit card is not a good idea. Wait until after your major process is approved. Lenders pull your credit report when you explore, and a recent hard inquiry or new account can lower the rate you are offered or result in denial.
If you need a card for everyday use and your score is in good shape, the temporary dip is worth it. The long-term benefit of a new account with positive payment history outweighs the short-term damage. Just do not open multiple cards at once, and do not increase your spending in a way that raises your utilization.
If you are building credit from scratch or recovering from past damage, opening a card is actually one of the best things you can do — as long as you use it responsibly. The initial score hit is temporary, but the positive payment history you build lasts for years.
Frequently Asked Questions
How long does a hard inquiry stay on my credit report?
A hard inquiry stays on your credit report for two years, but it stops affecting your credit score after about three months. After that point, lenders can still see it, but the scoring models ignore it.
Will opening a card hurt my chances of getting approved for a mortgage?
If you open a card within a few months of explore for a mortgage, it can lower your score and hurt your approval odds or the rate you are offered. Wait until after your mortgage closes to open new cards. If you have already opened one, do not open more — multiple inquiries look worse than one.
Does checking my own credit score lower it?
No. Checking your own credit report or score is a soft inquiry and does not affect your score at all. You can check your score as often as you want without any penalty.
Can I recover my score if I close a credit card?
Closing a card usually lowers your score because it reduces your available credit and raises your utilization ratio. Keep cards open even after you stop using them actively. The damage from closing is usually larger than the damage from opening.
What is the difference between a hard inquiry and a soft inquiry?
A hard inquiry happens when you explore for credit — a card, loan, or mortgage. It lowers your score and stays on your report for two years. A soft inquiry happens when you check your own credit, when a company pre-screens you for an offer, or when an existing lender reviews your account. Soft inquiries do not affect your score.