Applying for one credit card will not make a noticeable difference to your credit score. However, you will have multiple inquiries on your record if you apply for multiple cards in a short time- frame. Some companies believe multiple inquiries are a sign of a credit risk. However, multiple inquiries from mortgage, student loans or auto providers are generally acceptable, as most people have to shop around for these types of financing.

Credit Inquiries

Applying for multiple credit cards impacts a credit score depending on the individual’s entire credit history. For most individuals, one credit inquiry will reduce their credit score by about five points. If you have a short credit history or very few accounts, multiple inquiries can have a larger impact on your score. While lenders may consider the number of inquiries on a person’s record when approving credit, they are much more interested in how much current debt they have and whether they pay their bills in a timely fashion.

Pre-approved Credit Cards

If you review your credit report, you may notice several entries from businesses from which you have not requested credit. It is common for a business to check your credit report before offering you a service or credit. Creditors who send pre-approved credit cards will have usually checked out your report and score first. These are nothing to worry about and do not do any harm to your report. In fact, they can actually help improve your credit score.

Negative Influences on Your Credit Score

Maxed out credit cards or missing card payments have a much more serious effect on your credit score than applying for credit cards. If you are planning to get a credit card to transfer the balance of an old one, you will need to check the new interest rate first. If you apply for a card and fail to make payments you will risk being able to apply for credit in the future. Defaults, foreclosure and judgments also have a huge negative impact on a person’s credit score.

Fee Shopping

Before making a decision regarding a credit card, you should shop around first. Many financial institutions and banks offer no-interest or low rates for a fixed period. Others offer bonuses for paying off your balance each month. Credit card comparison and review sites are a good place to get honest and unbiased information.