Said It Here

Why did my credit score drop after getting a new card?

Adding a new card can trigger a sudden score drop that lasts for over a year even without late payments or high utilization. This unexpected penalty halts financial planning by threatening upcoming car financing and pushing up loan APRs.

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

  1. 1
    Waiting for the score to recover over time
  2. 2
    Pulling actual bureau reports to check how card limits are reported
  3. 3
    Signing up for credit monitoring services like Credit Karma to track changes
  4. 4
    Delaying the credit card application until after the auto loan is secured
  5. 5
    Saving extra cash to avoid financing part of the vehicle purchase entirely
  6. 6
    Shopping around at different lenders for better rates
  7. 7
    Explaining the financial situation directly to landlords or property managers
  8. 8
    Looking for sublets or housing options that do not require credit checks
  9. 9
    Waiting for short-term credit score fluctuations to rebound

In their words

Unedited, most upvoted first, each linked to the thread it came from.

For whatever reason when I added the gold card my scores dropped 78 points. It’s been over a year since then and they haven’t recoveredsource ↗

It wasn’t due to utilization since the gold card is a charge card and has no utilization as a result.source ↗

Like I said I didn’t cross over any thresholds on the age metrics, so there’s absolutely no reason my score should have ever dropped that much.source ↗

Amexkid93 · Personal Finance & Money Stack Exchange · 9 upvotes

I’m looking into getting a new travel rewards credit card (Amex Plat, Chase Sapphire Preferred) in the next month or so, and in around 6 month I’ll be looking to purchase a used car for the first time and financing some of it.source ↗

would opening a new credit card hurt my chances at getting a good APR? What do lenders look for when reviewing applicants?source ↗

notafancykitchen · r/personalfinance · 2 upvotes

What about my apartment hunting? I have 3 weeks. Do you think I can explain my way out of it?source ↗

Simple_Ad2307 · r/personalfinance · 1 upvotes

My score was 640 as of last night and I woke up it was 589.source ↗

right now at this moment in an apartment search....it's devastating.source ↗

Simple_Ad2307 · r/personalfinance

Where this came up

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