Does applying for a credit card hurt your credit score?
Hi, I am new to this forum, hoping someone can give me a feedback.
I have a Cap 1 Venture (blue one) since Jan 2011, Amex blue cash since 2002, and Phillips Conoco 76 MasterCard since 1999. Just recently Philips Conoco decided to stop the program.
My credit card is no longer active 3 days ago. They had a replacement program, but you're required to re-apply. I don't use this card frequently anymore, it was just to build credit when I was at college. I have excellent credit rating (upper 700s). My first question is will applying for a credit card hurt your credit score?
Second question, just recently I received a mail offer from Chase Sapphire (regular card, not the preferred one) that will give $500 cash back if I spend min $750 in 3 months. I am tempted to open one but my husband think it will ding my credit score because I just got Cap 1 Venture card earlier this year and these two are Visa Signature cards. Has anyone received similar offer in the mail and if so, what do you think about this card? Will my credit score got hurt if I got another credit card?
I love the Venture card because the rebate program has been working great. 2 points for any dollar spending. But for the Sapphire, 2 points only for dining. the Amex card is only used mainly for costco purchases. We used to use it heavily but the rebate wasn't compelling when I learned about the Venture card and we have switched since then.
1. Yes and no
Yes if you keep applying (about 8 inquiries without two years. No if you have not applied for anything which i am assuming is your case.
2. I have seen 500 after your spend 3000 but this 750 is almost too good to pass. Unfortunately I am not a big fan of chase (As a matter of fact, I hate chase) but if you pay your cards off in full and need an extra 500, I highly recommend you go ahead and apply.
The catch with chase is the more they give you back the more interest you will be paying, with the cards you have, I will take the 500 offer and go back to using my old or favorite card. If you shop Costco as i shop Amazon, i will also recommend the TrueEarning card.
Let me know if you have any more questions and welcome aboard.
I would like to answer part of your question. I also have the capital1 venture but have the gold card. I never got the chase sapphire but that is a more a card for people who travel on business. yes you can use for personal use but most people use it for business.
that's what I think about the sapphire. if you travel on business it's a great card. if you are looking for a card for places like Macys, gap etc then freedom is a good card.
do you travel on business?
Q. Does your credit score get dinged when you open a new account?
A. Yes it does (very small). Your average age of account will go down with every new card you open.
Better Question: Does it matter?
If you have a upper 700s credit score even if you take a small hit it will not matter. Once you get above 750 you qualify for the best deals and rates almost everywhere. Any hit you might take should be easily manageable in your situation.
To give you an example, I opened 2 cards recently (past 3 months). My score dropped by less than 10 points. Given a bit of time it will recover without issue.