Card Issuers Want You to Open a New Account for the Holidays

There are so many credit card offers available to consumers right now. It can be difficult to find which is right for you or even decide if you truly need another card. Before you jump on getting a new card simply to get the percent off they are offering if you open a new account, think about what a new card might do to your credit score.

Every time you apply for a new card, that company pulls your credit score to check your credit history. Multiple inquiries could lower your FICO score by as much as 15 to 30 points. Also, opening numerous retail credit cards is especially damaging to your score.

Another thing to remember is that closing those accounts later will also hurt your score. If you do open a retail credit card, usually these cards can only be used at that particular retailer. If you want to shop at multiple places you would either need to get another retailer’s credit card, or simply get a general purpose credit card that can be used anywhere.

To save your score and to keep a better eye on your credit card balance, getting a general use credit card would be the best way to go.

Source: http://www.usatoday.com/money/perfi/columnist/block/story/2011-12-05/credit-cards-credit-score/51658560/1