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Why did applying for a credit card knock my score down 3 points?
I applied through credit Karma's recommendations. I feel betrayed.

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Nunya has the best answer EVER!

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That was the most direct, and helpful answer EVER!

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Increase your credit knowledge

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Credit Karma makes money off of the advertisements you see through the website.  There are TONS of disclaimers listed all over the website telling you this.  As a result, you see recommendations based on your credit profile AND their paying advertisers that want your business.  But as Credit Karma doesn’t actually make the offers, you are applying through the banks that advertise here.  Soft checks to your credit (like the soft check performed by Credit Karma) don't show up in the calculations used to make your score.  But credit checks preformed when you apply for a credit card is known as a hard check and show up in your credit score because the lenders want to know if you are in financial trouble and are applying for credit with everyone.  So your credit score will drop with each application simply because you applied, regardless if you are approved or not.  Hard Credit Inquiries stay on your credit reports for up to 2 years, so be sure you are ready for the credit cost of applying for a new credit card BEFORE you apply.

 A few more tips to help you when considering getting a credit card to improve your credit are:

·        If you have fair credit, then you should avoid applying for cards that require good or excellent credit, as a denied application will not help you.

·        Never apply for a credit card without reading the complete terms of the card first!  Everything in the terms are related DIRECTLY to the card you are applying for.  When reading through the terms of multiple cards; don’t assume the terms are the same on each card simply because the cards are being offered by the same company. 

·        You should also be aware that some products can cost you more over time, and you need to determine whether the benefits are worth the cost. That includes cards with less favorable terms, such as those that carry a monthly fee or lack a grace period.

·        Be sure to consider whether reward cards that earn points, miles, or cash back serve your needs best, as some of these cards will have higher interest rates than other non-reward cards.

·        Finally, if you're thinking of applying for a card with an annual fee, weigh the benefits of that card, as there are plenty of cards for fair credit that have no annual fee. In addition, those with fair credit may not need to consider secured cards, since they can typically qualify for a standard card.

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