Will too many credit card applications affect credit score?

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A lot of people often ask: Will too many credit card applications affect credit score?  As a real estate broker, I will recommend you not to apply any credit related products, including credit card, within 6 months if you are planning to purchase or refinance a home.  Any credit related products often have inquiries on your credit report and your lender will ask for explanation, which could be troublesome.

Avoid any credit applications within 6 months of purchasing your home and refinancing.

Other than that, my answer is “Not Much Affect”.  My recommendation is to keep it within 4 credit card applications each year.  Usually most award credit cards require you to spend certain amount on purchases within 3 months.

Credit score is based on 5 organic elements:

  1. Payment History – make sure you pay on time
  2. Amount Owed – stay below 70% utilization of your credit
  3. Length of Credit History – keep 1-2 long history credit cards
  4. Type of Credit Used – mortgage and auto loan usually have hight credit score, do not be late
  5. New Credit – do not have too many credit inquiries in the same period

The key is to use your credit responsibly and spend responsibly.

* Message from @kingofcrazyformiles, Andy Lam

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