The Effect Of New Credit On Your Credit Score - The Credit Pros

Opening new credit accounts can impact your credit score, which is a crucial factor in financial health. New credit accounts for about 10% of your FICO score, and frequent new accounts can lower your score. Each credit application causes a small but accumulative drop due to hard inquiries. Rate shopping for mortgages or auto loans is less impactful. Maintaining a high credit score involves timely repayments and keeping credit utilization low. A score above 750 is generally considered good.