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Email this9:57 pm
October 21, 2013
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Periodically, this question has been raised as to what would be the impact of applying for a new credit card on one's credit score. The answer typically is that it wouldn't have much effect.
I have been perusing some old issues of MoneySense magazine before tossing them. Today, in the Feb-March 2015 issue, page 17, I read that the impact is precisely 7 points. This is insignificant unless you are perhaps sitting on the dividing line between two rating categories.
I don't know if anything has changed since then, but I can't think of why it should have.
2:24 am
April 27, 2017
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Doubt the impact is “precisely” anything. Firstly, there are 3 different credit reporting agencies using different systems. Secondly, there are other factors which could impact the score when you take out a new card, apart from the “hard enquiries” category. Like the average credit age and utilization which would be impacted differently depending on individual circumstances
7:05 am
October 27, 2013
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I think Loonie's point was one of relativity, i.e. 'how much impact does a hard inquiry for credit affect credit score' on its own. We all know there are a range of factors that determine a score but a simple additional hard inquiry on its own most likely does not affect relative change much. In other words, does 850 go to 830, and would a 760 go to 740?
My guess is similar to Mordko in that there is likely no single constant number and it likely varies by credit agency. OTOH, a number of hard inquiries over a short period of time may multiply the effect in a non-linear way.
If I get time later, I will go in and take a look at my own, at least for Transunion. I applied for and got a Roger's Elite card just some months ago and there would have been a hard inquiry for that.
8:36 am
November 8, 2018
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If you have an account with RBC, under View Your Credit Score they have an option to emulate different activities such as opening/closing credit card and how that could potentially impact current credit score.
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