Does applying for a Credit Card affect your credit score?

I'm 19 years old. Never had a credit card. I've had a couple overdrafts from my checking account (which was the stores fault, not mine but I have no way to prove it to the bank). My credit score was 616 when I checked it back in December. Then I had to get a small loan for some stuff with my car. I didnt have any late payments and always payed more than I had to for each payment so I could just get it over with.

A family member suggested to apply for a credit card from my bank and just make small purchases to bring up my credit score. So I applied for one at wells fargo but got denied... I dont know why. (I did this before I had my car loan btw).

Anyway, I was thinking about applying for a credit card for American Eagle or Gap just because it would be easier for me than carrying cash everywhere - plus i HATE my debit card... But I dont know if it will affect my credit score because I had already applied back in December (or Jan... Or feb... I cant remember). Help.

Does applying for a Credit Card affect your credit score?

Let me answer your main question: Yes applying for a credit card can affect your score. What it does is creates a %26quot;hard inquriry%26quot; that drops your score several points regardless of whether you're approved or not. So it's important not to waste precious points on applying for cards, so tell you what, actually since you bank at Wells Fargo, all is not lost. Were you aware that they offer a secured credit card? This would be perfect in your situation. You're wanting to build credit right? You would have to put a deposit upfront, to get a line of credit, but this isn't as bad as you think being that the deposit is usually linked to a savings account, which gains interest while you're building credit. Now the interest may not be a lot, but it sure beats nothing at all. The trick to using a secured card is this; treat is as if it only has a $50 limit on it and only spend around $20, and pay it off on time every month. This way, it shows activity without getting dinged on interest. Also, you can raise the limit by adding to the deposit, which can help your score because high limits provide a cushion between your total debt and available credit. And as long as you pay on time and keep the balance low, if not 0, the card usually after a year (which is in the case for Wells Fargo) converts to a regular card or a better one is offered altogether, and most importantly, the deposit is no longer needed and is given back to you. And you would've custom built a high limit credit card, built up your credit and made a savings nest egg all at the same time. So hopefully this will help you out

Good Luck!

Does applying for a Credit Card affect your credit score?

Yes. The link below is an excellent resource and there's not tons to read through. There's bullets with facts. Check it out. Credit system is kinda set up to screw ya huh?

Does applying for a Credit Card affect your credit score?

Yes and no.

The best thing you can do is to open just ONE account. Don't open one from the Gap and then one from Visa and then one from QuickTrip. Open ONE and make that your account.

You don't need the rest. If you shop there enough to get anything out the discount, you should just be working there.

Too MANY credit cards can seriously hurt you.

Does applying for a Credit Card affect your credit score?

My mom once told me.. %26quot;if there was one thing i wish someone had told me, and that was to never get a credit card.%26quot; -

Just because people can be irresponsible, doesnt mean you will. but BE CAREFUL! and yes your credit will either build or get worse, it's up to you.

Does applying for a Credit Card affect your credit score?

In your situation if you pay on time it will help you. It's when you have about 10 cards that it can start to hurt. Be careful and pay on time and don't exceed the limits placed on you by the card holder. Great way to begin credit. Next is to start thinking about a parent cosigning on an automobile..will help alot! Good luck and welcome to the world of Debt!

Does applying for a Credit Card affect your credit score?

Yes the inquiry will slighly affect your score but having an open line of credit with a low balance that is paid regularly will help your credit tremendously. You are much more likely to get approved now that you have the positive history of the car loan. Shop around for a good credit card with a good rate and good benefits, and only apply for the best deal or two you find. Just be careful not to use it unless you can pay it off within a month or two. Anyway, having one credit card in good standing will help your credit score a lot, so if you can handle the responsibility, go for it!

Does applying for a Credit Card affect your credit score?

bc/ of your age that means you have a very small credit history so until you become more established with the credit reporting bureaus they will dock you some points (though minimal) for applying for a credit card until you have that history. This throws a big warning sign out though bc/ once you have a credit card as easy as you may think it will be to pay the balance back - they are SNEAKY little buggars. For example, most companies will increase your interest rate if you have a late electric bill payment (no joking around here). Also, the best way to get started is to request a small minimum balance of about 250-500 dollars. That way - even if you find yourself in trouble with payments it won't be life-breaking to pay it back. The difference between your small loan and a credit card is that your small loan was probably a fixed rate which the companies don't make very much money on. Credit card companies will stop it nothing to make is easy to spend and hard to pay back. If you want to help your credit best try piggybacking. It's where you get your name added to another person's credit card (most likely a relative/parent) that has a low balance and high limit. This will increase your score without you worrying about spending bc/ you can just have your parent or relative cut up the card when it comes in the mail so you never use it. If no one will do this for you than definitely try for a small limit card to start and don't get carried away. I was told the famous last words %26quot;if you don't have it in the bank, don't spend it on the card%26quot; and foolishly messed up thinking I could pay it back later and now I've been on credit counseling for a year.

Does applying for a Credit Card affect your credit score?

your credit isnt the reason why you were denied a wells fargo checking account. due to all of your overdrafts with your prior checking accounts, you were denied. you have been placed in something called telecheck. telecheck means you have accounts in the negative. teh ebst you can do to open a checking account is to ask banks inclusing wells fargo about 2nd chance checking accounts. or try prepaid cards for direct deposit. and yes everytime you apply for credit cards and open bank accounts your credit is ran. so many inquiries appear on your credit report. and now that you're in the telecheck system, its on your credit report now as overdrafts probably totalling 10 Xs what you actually were overdrawn by. with all the fees you can easily go from $100 to $1,200. so you have a hard time getting a checking account and your credit is marred.

Does applying for a Credit Card affect your credit score?

Yes, it does , because when you apply for credit, they check your credit report, therefore you have a hard inquiry on your credit report. Too many inquiries can make your credit score go down alot, so if you apply for a credit card, do not apply for too many.