The Credit Report and FICO Credit Score play a key role in credit card applications. It is generated by the three major credit reports Experian, Equifax, and TransUnion. After a bank receives a credit card application, it pulls one or more of the credit bureau reports to make a decision on approval. In most areas of the U.S., Chase, Citi, and AmEx are the three banks that pull Experian’s credit reports to determine approval, so it is generally accepted that Experian’s credit reports and scores are the most informative.
Every time you apply for a new U.S. credit card, it does have a negative impact on your credit score in the short term. With an additional Hard Pull (HP), you have a new account with a length of 0, which will cause your credit score to drop somewhat. However, in the long run, the impact of HP will be gone after 2 years, and the advantage of multiple new accounts will be greatly increased when they become old accounts. Therefore, as long as you master the rhythm of card application, it will not have a particularly negative impact on your credit score, but will become a boost in the later years. Of course, if you are planning to apply for a mortgage in the near future, the negative impact in the short term needs to be seriously considered and try not to apply for a new credit card within six months.
