How much will opening another credit card lower my score? Please HELP?
I have excellent credit right now, all 3 scores in 748 to 798 range. Now I want to get a good credit card that has good rewards, since I pay balance off monthly anyway. I got an offer for the Freedom card that offers cashback, etc. I have not opened a new credit card account in 6 years, so this is tghe 1st one. Will opening it lower my credit? I ask because I will be applying for apartments in 4 months and I don't want bad credit while I apply!
- 10 years agoFavorite Answer
It will barely have an effect (if any). You might actually go up because you'll have more credit and less of a debt to credit ratio.
The Chase Freedom is awesome! If you want you can take up to 50% your limit in a cash advance. Amazing cash back rewards.
They should be giving you at least 10,000 points to sign up for the card. When you login to your account online you can see what the 10,000 points can buy you. I clicked "Send me a check for $100" and got a check in the mail within a few days.
They gave me a $7500 limit when my highest credit card limit prior to that was $3100 at Discover...
....Off Topic but right now it is a buyers market in housing. There are the sickest deals out there for homes. With your credit score you would qualify for a 30-year mortgage no problem. All you are missing is the income.
Just to give you an idea my wife works at a minimum wage job earning $17,500 per year. She has a 715 middle credit score. She was pre-approved up to $60,000 FHA (through a loan officer).
We ended up getting a home for $25,000 that needed a lot of work. Her monthly mortgage is only $350 and that includes insurance and taxes rolled in.
So we are happy paying $350 a month for our 3 bedroom and 1.5 bath home with a 2 car garage and big yard vs. paying $900 a month for an apartment.
Only thing is we put about $12,000 into repairs to get the house up to par (new carpet, doors, kitchen cabinets, paint, etc.).
Just throwing some ideas out there for what you can do if you have good credit...
- Go with the flowLv 710 years ago
From Money Magzine:
Scores above 760 to 760 are considered excellent.
Anything higher than this is really usless to get the best rates.
If you average your scores - you are there.
You did this by paying your credit cards in full each month.
A new card will lower a rating for the first 6 months (slightly).
The fico scoring system is a huge mystery (so they can charge for it).
In your case, I would not worry about it.
I would open the new card.
Apartment owners are looking for things like bankruptcies, liens, judgments, etc.
They will focus more on your employment, criminal record and ability to pay back.
You have not been abusing credit. You are in the clear even if you get a new card.
Chase Freedom has a nice card right now - and you would qualify.
I think they still offer $100 just for opening an account.
And you get 5% back on quarterly items.
1% cash back on everything else.
Go to BankRate.com to find a card you like. Click on credit cards.