Why did getting a credit card lower my credit score?

Applying for a new card can initially lower your score because the card issuer will do a hard credit pull when deciding whether to approve your application. Further, a new account can potentially work against your scores as it will lower the average age of your accounts.

What factors affect a credit card?

Credit scoring calculations, such as the FICO score, look at a few key factors related to your debt. The amount of overall debt you carry, the ratio of your credit card balances to your credit limit (also called credit utilization), and the relation of your loan balances to the original loan amount.

What makes a person have a lower credit score?

This is often referred to as your credit utilization ratio. Even though age is not considered in the FICO score, the length of your credit history is. A young person will typically have a lower credit score than an older one, even when all other factors are the same.

How does a new credit card affect your credit score?

The percentage of the total credit you’re using, also known as amounts owed or credit utilization rate, is the second-most important factor of your credit score. For every new card you open, you’ll receive a new credit limit which increases your available credit.

How does credit utilization affect your credit score?

Lower credit utilization can be good for your credit score. Credit utilization, the relationship between your credit card balances and limits, is the second most important factor considered in your credit scores. The only credit scoring factor that matters more is payment history.

Why does my age affect my credit score?

Even though age is not considered in the FICO score, the length of your credit history is. A young person will typically have a lower credit score than an older one, even when all other factors are the same.