How Many Credit Score Is Lost When Applying for Credit Card

How Many Credit Score Points Are Lost When Applying for a Credit Card?


When it comes to managing our finances, credit cards play a significant role in our lives. Credit cards offer convenience, flexibility, and numerous rewards and benefits. However, before applying for a credit card, it is essential to understand the potential impact it may have on your credit score. Many individuals wonder how many credit score points are lost when applying for a credit card. In this article, we will explore the factors that affect your credit score, the impact of credit card applications, and provide some frequently asked questions to guide you through the process.

Factors Affecting Your Credit Score

Before delving into the impact of credit card applications on your credit score, it is crucial to understand the factors that influence your credit score. The most common credit scoring model used by lenders is the FICO score, which takes into account the following factors:

1. Payment History: This accounts for 35% of your credit score. It reflects whether you pay your bills on time and if you have any delinquent accounts or public records such as bankruptcies or tax liens.

2. Amounts Owed: This factor contributes to 30% of your credit score. It considers the total amount you owe, your credit utilization ratio (the percentage of available credit you are using), and the balances on specific types of accounts such as credit cards and installment loans.

3. Length of Credit History: This makes up 15% of your credit score. It considers the age of your oldest account, the average age of all your accounts, and the length of time since specific account activities.

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4. Credit Mix: This accounts for 10% of your credit score. It assesses the variety of credit accounts you have, such as credit cards, mortgages, auto loans, and student loans.

5. New Credit: This factor contributes to 10% of your credit score. It considers the number of recently opened accounts, the number of recent credit inquiries, and the time since the last credit inquiry.

Impact of Credit Card Applications

Now that we have a better understanding of the factors that affect your credit score let’s explore how credit card applications impact your credit score. When you apply for a credit card, the issuer will typically perform a hard inquiry on your credit report. A hard inquiry occurs when a lender reviews your credit report to make a lending decision. Each hard inquiry can potentially lower your credit score by a few points temporarily.

The impact of a credit card application on your credit score depends on various factors, including your overall credit history, the number of recent credit inquiries, and the number of new accounts opened. Here are a few scenarios that illustrate the potential credit score impact:

1. Limited Credit History: If you have a limited credit history, a single credit card application may have a more significant impact on your credit score compared to someone with an established credit history. However, the effect is generally minimal and tends to fade over time.

2. Multiple Credit Card Applications: Submitting several credit card applications within a short period can result in multiple hard inquiries, which may lower your credit score more significantly. This suggests to lenders that you are seeking credit and may be a higher risk borrower.

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3. Responsible Credit Behavior: If you have a solid credit history, consistently make payments on time, and maintain low credit card balances, the impact of a single credit card application may be minimal. Your responsible credit behavior will outweigh the temporary dip in your credit score.


Q: How long does a credit card application inquiry stay on my credit report?
A: A credit card application inquiry typically remains on your credit report for two years. However, its impact on your credit score diminishes over time.

Q: Will my credit score be affected if I am declined for a credit card?
A: No, being declined for a credit card does not directly impact your credit score. However, the hard inquiry associated with the application will still be present on your credit report.

Q: Should I avoid applying for credit cards altogether to preserve my credit score?
A: While credit card applications may temporarily impact your credit score, responsible credit card usage can help build a positive credit history. The key is to apply for credit cards strategically and avoid excessive credit inquiries.


Applying for a credit card can have a minor, temporary impact on your credit score. The exact credit score points lost depend on various factors, including your credit history and the number of recent credit inquiries. However, responsible credit behavior and maintaining a healthy credit history will outweigh the short-term dip in your credit score. By understanding these factors, you can make informed decisions when applying for credit cards and ensure a positive financial future.