Is a 2% Cashback Credit Card Worth the FICO "Ding"?

[Anonymous]

I've just been turned on to Schwab’s Invest First visa card, which gives unlimited 2% cash back on general purchases. The best all around cash-back card I can find. I’m thinking about applying but I have a dilemma. I would use this and reap the $ rewards, instead of putting the general purchases on my my Discover [1% cash-back] credit card. Anyway, does anyone know just how much the credit check "ding" will affect my FICO score? I’m trying to weigh the cost vs. benefits. The a additional cash bonus might only be a couple hundred bucks a year. But, I’m going to be purchasing my first home within the year, so my FICO score  is also vital to my financial well-being. Please offer any specific advice. Thanks!

[Junejer]

Hello creditcrazed, and welcome to the forums. Please read Credit Scoring 101, if you haven't already.

The impact will depend up what your current scores are and how many INQs you currently have. In general, 0-12 points.

[Anonymous]

It would defiantely be worth it without the home consideration - its pretty close.  You need to charge $10,000 to the new card just to make a $100 difference (which does not account for discover letting you turn $20 to $25 and $40 to $45 on some giftcard redemptions)

I would probably not do it now as even .25% on your mortgage would outweigh the additional rewards by a hugh margin (and I do everything).  I would do it one second after I got the mortgage though.