Ask Izzy: Will It Hurt My Credit Score If I Apply For A Credit Card To Get The Sign Up Bonus Points?

Hi Izzy,

Will it hurt my credit score if I open a credit card to get the sign-up bonus points?

Thank you,

Chase M., Union, Maine

Keep reading below for Izzy's answer and more details...

Hi Chase,

Thank you so much for the question. This is actually the top question I get asked from people wanting more information regarding credit card sign up bonus points.

Opening a credit card will drop your credit score, but only by a handful points. If you have a score resting comfortable in the 700s, this is no big deal. If you open a few in a short period then you could see more of a drop but usually not too much.

Keep reading below for more...

That being said, in a few months the inquiries fall off and the score rebounds. If anything, since a large percentage of a FICO score (30%) is based on total credit available, by opening a credit card your score will actually increase over time.

One exception to the rule: if you’re applying for a mortgage or another loan, you should hold off any applying for any forms of credit or doing anything that may cause a dip in your score. The higher your credit score when applying for a loan, the lower your interest rate will likely be.

Keep reading below for more...

As always, opening a card for sign up bonus points is only worth it if you pay your balance in full each month. Otherwise the monthly interest will negate any benefit of the points earned for signing up and spending on the card.

Thank you again for the question!



Founder & Owner, Be Secure Financially


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