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karmajada

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Applied for a credit card, was approved score dropped 42 points overnight. Why so many points?

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Hi KarmaJada!

It's very difficult to say without having complete access to your credit profile.  That being said, I can throw out a few educated guesses.

You'll always see a small drop of between 2-10 points for a HARD inquiry on your credit report.  Just applying for a card is all it takes for that to happen.  Had you been denied credit at this point, that would have been the end of it.

Your acceptance opens up the door to something called "Average Age of Accounts".  Basically, you've just opened an account that is 1 day old.  How many other accounts do you have, and what are the "ages" of them?   This could result in another drop in your score.   Basically, if this is your first card, the score drops so much because they want to have a "red flag" if you were to apply for other cards right away.  Wait a few months, you'll see your score return to "normal".   Make timely payments and keep "utilization" in check and you're score will get even higher!!

Hope this helps you!

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