Will my newly opened CC hurt my score

[Sedanbmw]

Hi everyone, 

I am currently rebuilding my Credit score in hopes to buy a car in a month or so, I started  rebuilding  back in January when  I had a score of 530 and 93% CC utilization, last week my score was up to 590, and utilization was down to 56%, and got a few negative reports off my report.

So I had a brilliant idea (Saractiscally speaking) open an account with NFCU and open a Credit Card with them ;I opened the acouunt and applied and was approved for 2500 CC,  my theory is that if i dont use it, it would make my CC utilization lower.  But now i see my score dropped 4 points because of the inquiry the Credit Union did for the checking account and Credit Card.  

Do you think that once my new credit balance of $2500 shows on my credit report, it will increase or lower my credit score? BTW, I plan to bring my current CC utilization to 19% by the end of the month by paying another $900 off my already existing Credit Cards

Thanks for any advice!

[-NewGuy-]

It will probably drop a few points from a reduction in AAoA, but lowering utilization would raise it more than the AAoA hit would drop it. If your UTIL right now is 56%, and at the end of the month you will have one new TL (and the corresponding hit to AAoA), but UTIL down to 19%, I am pretty sure your score will be higher, not lower.

[BigBS]

Still new at this, but anytime you have an inquiry it will have a lowering impact on your score.  How much depends on what your score was previously and the information associated.  Scores should recover within about 6 months - perhaps as early as next month with a lower utilization.  Continue paying the debt down and increases will happen.

[user5387]

Negatives are a hard pull, new tradeline, and reduced AAoA.

Positive is lower utilization.

If the lowering of utilization is dramatic, then it may dominate.  Otherwise, probably not.

[Sedanbmw]

Thanks!, i hope that will be the case.

[-NewGuy-]

Going from 56% overall to 19% is pretty significant IMHO. I know part of that is due to your $900 payment, but still. Should be a little better still once it's under 10% as well. Let us know!

[Sedanbmw]

Update...so after all was said and done after i opened my new credit card my Utilzation did go down to 30%..but the hard inquiry and loss of age of account brought my credit score down by one point..i do anticpate it would go up because i brought my CC utilization down to 4% after paying $1200 on the accounts..it just has not updated yet.

[SunriseEarth]

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@Sedanbmw wrote:

Update...so after all was said and done after i opened my new credit card my Utilzation did go down to 30%..but the hard inquiry and loss of age of account brought my credit score down by one point..i do anticpate it would go up because i brought my CC utilization down to 4% after paying $1200 on the accounts..it just has not updated yet.

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But eventually the CC will age, the HP will fall off, and scores will rise.