If I apply & get the credit card, will it lower my current credit score?

Question

Or how about by closing some accounts?

Answer 1

No, it will higher it. Try closing/paying off some of your credit accounts inorder to lower you credit score!

Answer 2

If credit agencies see you applying for a lot of credit, it will temporarily lower your score, so don't do this when you are about to take out a loan for a car or house.

Closing old accounts may not be a good idea either because credit agencies look for longevity. If all of your current credit lines are only a few years old, you don't have as well of an established history of making payments.

Having 5-6 cards is usually what is recommended (less is more obviously, but don't just have 1). As long as you are not carrying large balances on them you should be ok (a high debt-to-credit ratio hurts your score).

Answer 3

Okay, you are dealing with three components of a credit score here in your question: Inquiries, Debt/Available Credit ratio and Credit history

Inquiries are made every time when you apply for credit. The more inquiries you have, the more it seems you are looking for credit and may be more of a risk. Too many inquiries will drop your score. They stay on your report for 2 years, so the fewer the better.

They only comprise 10% of your score, so it's not that big of a ding. When I applied for a card recently, my score dropped maybe 2 points on one from 760 to 758.

Debt/Credit ratio is just what it seems. How much of your available credit are you using. If you have 25k in available credit and are only using 2k then you have a usage ratio of 8%.

Now if you close an account with a 10k limit that has a zero balance then your available credit drops to 15k and your debt/credit ratio jumps to 13%. You now look a little riskier to creditors and your score will drop.

This ratio comprises 30% of your score, so it would be best to not close unnecessary accounts.

Credit History is of course how long you have had your accounts. If you close really old accounts then you only have new accounts which are active. People with a lot of new accounts are seen as riskier than people who's open accounts are comprised of established accounts. Your score will drop if you close older accounts.

This history part is 15% of your score, so it's best to watch what accounts you are closing.

I hope that helps!

Answer 4

I'm not guessing here, I know the answer.
Applying and getting a credit card will not do much to your credit score. But if you get the card and don't use it much, and you have a large proportion of the credit as unused and available.....that's what keeps your score high. Having a lot of available credit but only using a small portion of it.
Closing some accounts can actually hurt your credit score in the short term. That's because when you pay it off, all of it's available credit and then you axe it. Your ratio of unused available credit drops and that hurts your score in the short term.

Answer 5

the more available credit debt you have does effect your score, even if you pay it off monthly, it is not reported that way, it is reported monthly, with amount owed, and if payments are on time. Credit is hard to explain, to many cards, will drop your score, just applying, is a hit on your score

Answer 6

What will lower your score is the practice of paying on time. Never maintaining a balance. As long as you have a balance your credit score will not drop.

Answer 7

Never get a CITI bank card. They block it every 48 hours to prevent fraud, then you must call them to get it reinstated, or wait until they call you at 8 am to ask you the previous 5 purchases that may have been made by yourself or your spouse. If you do not know the answers, card is shut off. Just as they discriminate against military personnel that must move often and will not allow them an active card unless they have proof of residence for the past year.

Answer 8

The more cards you have, the more debt you can be in, the lower your credit score.

Answer 9

no. applying for credit cards does not have any effect on your credit score. I checked into it and found out.

Answer 10

No, credit cards build credit, unless you dont pay them off in full every month like an idiot.