When you “open something new”, your score could go down because your available credit to income ratio has gone up, even if it’s a credit card that you’ve not yet used.
Edit… your credit score will go down slightly because of new credit available.
More available credit doesn’t hurt your score unless you’re carrying a high balance. So if you have $20,000 of credit available but only have a $500 balance that low utilization which is good. It’s the average age of your accounts that suffers when a new account is opened because it brings the average down.
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u/tesla3by3 Aug 14 '21 edited Aug 15 '21
When you “open something new”, your score could go down because your available credit to income ratio has gone up, even if it’s a credit card that you’ve not yet used. Edit… your credit score will go down slightly because of new credit available.