Credit and Debit Cards

Is it true that opening up a new credit card account will jump your credit score 20 points?

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Wiki User
2011-09-13 03:15:24

That is simply something that is completely untrue. Credit

Scores are driven off multiple factor. I am a credit analyst for a

major credit card company and I hear so many misconceptions about

credit that I can't help but to laugh at some of them.

Opening, Closing, paying credit cards off, charging balance onto

the car, obtaining an installment loan (like a mortgage, car or

personal loan) all affect everyone differently based on how loan

you've had credit, how much debt you currently have, how many

recent inquiries for credit, the average age of the accounts that

are already open, the time since you last opened an account, how

many open accounts you have, how many open but inactive accounts

you have, if you have any delinquent account such as medical

collections, utility collections, or late pays or charges off on

you current credit report. Ehat it boils down to is that nothing

with affect 2 different people the same way when it comes to credit

because even though all the history could be the same there will

always be slight various that will change it up for most


As an example...I recently opened a new credit card with a

$15,000 limit and transferred $9000 to the account and paid off all

of my other credit cards, however even though I had a high credit

limit and paid off other card rather than adding debt my score

dropped by 30 points...due to the inquiry to get the account open,

the adding of the account to the credit report and then the

balance...that is what really made it hurt...the account was new

and new accounts with balance in excess of 50 percent of the credit

line tend to have a huge impact on credit scores.

However, I have know people that had 3 or 4 cards completely

maxed out to the limit and opened a new account and transferred the

balance and there scores went up because they weren't as maxed out

on the other accounts any more.

Best thing to do...get a copy of you credit report and score

before and after the account is opened and compare the


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