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OldFrog75

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Applying for a CK recommended card? Is it worth it?
Total credit utilization goes down but the hard inquiry stays on your report for 1-3 years. Is it worth it?

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First, be cautious using the recommendations, they are more of advertisements than preapprovals. Do some research on a card before applying for it to see if you have a chance of getting approved. Some credit card issuers have preapproval links on their websites that you can test the waters with and only get a soft inquiry doing so which does not affect your credit. Hard credit inquiries remain on your reports for 2 years, but lose damage after 1 year. Hard inquiries are not that big of a deal unless you have a pile of them. Hard inquiries have less bearing on a credit score than credit utilization does, while I cannot give you exact percentages or details, I will say that lowering a utilization rate would most likely be worth a hard inquiry. Keep in mind thought that when you open new accounts it also reduces the average age of your account which will reduce a credit score. If you have no cards or just one, adding another credit card can be beneficial to your fico scores. If you are building credit, you should not worry about Hard Inquiries as they are a necessary evil in building a credit profile.

Top Contributor
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Your call to make.  Worth is always highly subjective regardless of topic.

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Reply by
OldFrog75

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Thanks for the reply but I was looking for something a little more specific as in, "1 hard inquiry will lower your score by 5% or but the decrease in credit utilization will raise your score by 7% - you make the call..."

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On second thought...

I guess I'm looking for someone to reveal the algorithm that shows how much a % change in credit utilization is likely to affect one's score vs 1 hard inquiry and no one here is likely to provide that.

Credit Karma Team
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Hi OldFrog75,

The alogorithms are proprietary and no one knows the exact formulas. It's highly dependent on your credit report, too - if you have a limited credit history, smaller actions can have a more dramatic impact. 

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