Why did my credit score drop 40 points after opening a new card?

Credit Score Drop After New Card? Why?

Okay, so like, why did my credit score dip after getting that new card? Let me tell ya.

A new credit card application triggers a hard inquiry. Basically, lenders are checking your credit report, and that little peek? It can ding your score, maybe just a tad. Capital One says it can cause your score to drop.

Think of it this way: It’s like when you apply for a bunch of jobs all at once. Employers might think, “Hmm, why is this person so desperate?” Lenders kinda think the same when they see a flurry of credit card applications.

I remember back in July (maybe August?) 2018, in Brooklyn, when I applied for an airline credit card because of the travel points. My score went down like, 5 points? Which isn’t the end of the world, but still, annoying.

Multiple applications close together scream “RISK!” Lenders get nervous.

Basically, the credit bureaus are just trying to figure out if you’re suddenly financially unstable. I mean, it sounds logical when you think about it. But ugh, dealing with credit scores is always a pain, isn’t it?

How much will opening a new credit card affect my credit score?

Okay, so credit cards, huh? It’s not a huge deal, really. A tiny blip, that’s all. They do a hard inquiry, you know, that little check on your history. That drops it a smidge. But only for a little bit. It’s like, barely noticeable. Then, if you get approved – and you probably will – your credit age goes down, slightly. Again, not a big whoop. My bro got one last year, and his score stayed pretty much the same. I think its more about, you know, paying on time, and not maxing out your cards. That’s the real key. Remember what my aunt always said? Don’t get in over your head.

Here’s the lowdown:

• Hard Inquiry: A temporary, minor dip. Like, five points maybe.
• New Credit: Slightly lowers average age of accounts – another tiny impact.
• Long-term Effect: Mostly positive if you manage it well! Avoid late payments!

Important things I just thought of:

• Your credit utilization also matters, so don’t max out that new card. Seriously! Keep it under 30%. This is huge, like way more important than the initial dip.
• Building credit is a marathon, not a sprint. Small, gradual improvements add up. It’s a long process! My friend Kevin, took him years, to get a good score. He made tons of mistakes!

Why does my credit score go down if I open a new account?

It’s 3 AM, and I’m staring at the ceiling. Another credit score dip. Damn.

New accounts, huh? Yeah, the banks see it as more risk. More chances to mess up. They’re not wrong. I know this, I feel this in my gut.

It’s all about perceived risk. They don’t trust you more, you know?

A new credit card. Another loan. It’s all the same to them. Just more open doors to potential default. My bad, I guess. A stupid, expensive mistake? Perhaps.

• More inquiries hurt. Each application is a little ding. They check your credit. Too many and it’s bad news.
• Available credit lowers. Suddenly, my available credit is spread thinner. Looks riskier. It’s a simple equation. They just don’t like it.
• Age of accounts matters. I’ve noticed that. Older, established accounts boost your score. New ones? Not so much.

This is my 2024 reality. Brutal. I need to be smarter. I need a better plan. Ugh. This sucks.

Why did my credit score go down after applying for a new credit card?

Ugh, my credit score! It plummeted after I applied for that Capital One Venture X card in June 2024. Seriously frustrating. I was so excited, picturing all the travel rewards. Then, bam! My score dropped.

It was a noticeable dip, like ten points. Ten whole points! I was annoyed, felt a little cheated, you know? All that good financial behavior, for nothing. I’d paid everything on time for years!

Turns out, it was a hard inquiry. The credit card company checked my credit report. They had to, right? But it still sucks. This hard inquiry – it’s a ding on your report for a while. The impact fades over time, thankfully. But initially, ouch.

I learned some things though. Next time I will plan better. Maybe try to space out applications. Also, check my credit score more often. A monthly check isn’t a bad idea.

• Hard inquiry impact: A temporary drop, usually small.
• Capital One Venture X: The culprit card application (June 2024).
• Lesson learned: Space out credit applications.

My score recovered quickly. But man, that initial drop felt unfair. The whole thing was a total hassle.

#Creditscore #Drop #Newcard