The Fear Is Common
"Won't applying for cards hurt my credit?" It's one of the most common questions beginners ask—and the answer is more nuanced than a simple yes or no.
Let's separate fact from myth.
What Actually Affects Your Credit Score
Your FICO score is calculated from five factors:
Whether you pay on time. The biggest factor by far.
How much of your available credit you're using.
How long you've had credit accounts.
Recent applications and new accounts.
Variety of account types (cards, loans, etc.).
Myths vs. Facts
"Applying for a card will tank my score"
A single hard inquiry typically drops your score by 5-10 points temporarily. For most people with good credit, this recovers within a few months. It's a minor factor (10% of your score).
"More cards means worse credit"
More cards can actually help your score by increasing your total available credit, which lowers your utilization ratio. Many points enthusiasts have 10+ cards and 800+ scores.
"I should close cards I don't use"
Closing cards reduces your total available credit and can shorten your credit history—both negatives. Keep no-fee cards open; consider whether annual fee cards are worth keeping.
"Checking my own score hurts it"
Checking your own credit is a "soft inquiry" and has zero impact on your score. Check it regularly to stay informed.
The Real Impact of Getting a New Card
When you apply for a credit card:
- Hard inquiry: Score drops 5-10 points (recovers in ~3 months)
- New account: Lowers average account age slightly
- More available credit: Improves utilization ratio (positive)
For most people with established credit, the net effect is neutral or slightly positive over time—especially if you keep utilization low and pay on time.
If you're planning to apply for a mortgage or auto loan in the next 6-12 months, be more conservative with new card applications. The temporary score drop could affect your loan terms. Otherwise, don't overthink it.
What Credit Score Do You Need?
For the best travel rewards cards, you generally need:
- 670+: Minimum for most decent rewards cards
- 700+: Good approval odds for most cards
- 740+: Excellent approval odds for premium cards
If your score is below 670, focus on building credit first: get a secured card, pay everything on time, and keep utilization low.
Key Takeaways
- Payment history and utilization matter most (65% of your score)
- Hard inquiries have a minor, temporary impact (5-10 points)
- More cards can actually help your score by improving utilization
- Don't close old cards—keep them open for credit history
- Be conservative if you're applying for a mortgage soon