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midnight86

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how come my credit score goes down in the simulator?
I opened a credit card with a $500 limit a few months ago - my only credit card. My credit score currently only lists my student loans, which are always paid on time. The credit card still has not shown up on Credit Karma, but I want to know how it will affect my credit, so I ran the simulator.

When I open a $500 limit credit card, carrying no balance, with no lat payments for 2 years, my credit score goes down 5 points! How does that make sense? I opened this credit card to establish real credit. Is the simulator wrong, or does having a credit card that is paid off in full every month really reduce your credit?

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Top Contributor
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Opening a new account, like your Credit Card can impact your score in a couple of ways.

1) Hard Inquiries will increase. 

2) Average Age of Open Credit lines will decrease

When you use the simulator, try just adding the $500 into the Add a New Credit Card section. This will automatically account for the hard inquiry and the decline in average age. 

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