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Your credit score is unlikely to drop for no reason, but it might drop for reasons you do not expect. Simply applying for a new credit card, closing out an old one, or being late with a payment can affect your score. A drop in your credit score of 80 points may be enough to reduce your credit score from “good” to “fair,” which can mean you will pay significantly more to borrow money.

Here’s a look at the reasons your credit score might drop, how to monitor your score, and what to do if your credit score drops suddenly.

Why Did My Credit Score Drop 80 Points?

Your credit score is based on factors related to how you manage your debt. Specifically, whether you pay your bills on time, how much you owe creditors versus how much credit you have available, the length of your credit history, the types of debt you have, and how often you apply for a new loan or credit card. Bankruptcy and foreclosures are additional threats to your credit score.

Any one or a combination of these factors could cause your credit score to drop.

Should You Be Worried About Your Credit Score Dropping?

Credit score changes are fairly common and not always a cause for concern. However, an 80-point drop is worth looking into, as it could impact whether you get approved and receive favorable terms for a loan or line of credit.

For instance, if your score drops from 700 to 620, it’s no longer considered “good.” That means that you will not qualify for the best mortgage or credit card rates because a lender will consider you a riskier borrower and could charge you more for financing.

It’s important to first understand why the drop happened so you can correct any issues and begin getting your credit back on track. Monitoring your credit score can be a good place to start, as it allows you to track changes to your score and get insights into your financial health.

Reasons Your Credit Score Went Down

There are a few reasons why your credit score might go down. But bear in mind that it can take over a month for your credit score to update and reflect any changes in your credit situation.

You Applied for a New Loan or Credit Card

If you apply for a new loan or a credit card, your credit score may go down because card issuers will perform a “hard pull,” or hard credit inquiry, when they look at your credit information. According to FICO™, a hard pull typically takes five points or less off your FICO Score. However, if you apply for several credit cards within a short period of time, it could have a greater impact on your score.

Your Credit Card Balance Went Up

If you carry a balance on your credit card, you won’t just rack up interest charges — your credit score might drop, too. Thirty percent of your FICO Score is based on the amount of money you owe. A significant balance on a credit card could cause your score to fall and your credit utilization rate — or how much of your credit limit you’re using on your revolving credit accounts — to rise.

You Missed Payments

Around 35% of your FICO credit score is based on your payment history. Therefore, if you fail to make your monthly payments — or are late making a payment — your score could fall.2 Tools like a money tracker app can help you identify upcoming bills, create a budget, and more.

You Closed a Credit Card Account

When you close a credit card account, especially one you’ve had for a long time, the average age of your accounts falls. That, in turn, could cause your credit score to dip, as the length of your credit history accounts for 15% of your FICO Score.

What Can You Do If Your Credit Score Dropped by 80 Points?

If your credit score drops by 80 points, there are some steps you can take to find out why and to rebuild your credit score.

Ensure Your Payment History Is Correct

Creditors can make mistakes and report inaccurate information to the credit bureaus. Fraudsters can steal your identity and use your accounts. So it’s worthwhile to check your credit report, including your payment history, and dispute any inaccurate information.

You can check your credit report for free from each credit bureau on AnnualCreditReport.com. You can also check your credit report for free with Experian and sign up for monthly updates.

Don’t Miss Payments

A payment that’s over 30 days past due may be reported to the three major credit bureaus. If you fail to make a payment for 90 days, your creditor may refer your account to a collection agency. These records will remain on your account for seven years.

Keep Your Credit Utilization Rate Low

As you use more of your available credit, your credit utilization rate will increase. The higher your credit utilization rate, the more of a risk you are to a lender, and the more your credit score may decrease. Aim for a rate below 30%. For example, if your credit card has a credit limit of $12,000, don’t use more than $3,600, and ideally use $1,200 or less.

Hold Off on Applying for a Credit Card, Loan, or Mortgage

If you apply for a new loan or credit card, the lender will conduct a hard inquiry to check your credit score. As we mentioned, this type of check will only temporarily lower your score by a few points. But many hard inquiries over a short period can have a compounding effect on your credit score. This might occur if you apply for several credit cards at once. The impact of a hard inquiry will typically last a few months to a year.

Avoid Bankruptcy or Foreclosure

Declaring bankruptcy and experiencing foreclosure on a property both cause a significant drop in your credit score. And both stay on your credit report for a long time: seven years for Chapter 13 bankruptcy, 10 years for Chapter 7 bankruptcy, and seven years for a foreclosure.

How to Build Your Credit Score

Building your credit score comes down to sensible fiscal management over time.

Whether your credit score dropped or not, there are steps you can take to help boost your numbers. Examples include:

•   Paying bills on time

•   Checking your credit report regularly for errors

•   Lowering your credit utilization rate

•   Keep spending in check — a spending app can help

Scenarios Where Your Credit Score Might Drop

Here are some scenarios where you might be surprised to find that your credit score has dropped.

You Pay Off Credit Cards

Let’s say you have three credit cards: one with $5,000 in available credit, one with $8,000 in available credit, and one with $500 in available credit. That’s $13,250 of total available credit.

You have a total balance of $3,975 over all three cards, which gives you a credit utilization ratio of 30%.

Let’s also say you take out a debt consolidation loan to pay off all debt except for $250 on the card with a $500 limit. You then close out the two cards with no debt — taking with it $13,000 in available credit. You’ve kept open the card that has a $500 credit limit and a $250 balance.

This might seem like a good move because you’ve paid off over $3,000 in debt and eliminated two credit cards. However, you now have a 50% credit utilization rate, significantly higher than the recommended 30%. This may increase your credit score.

You Close an Old Credit Card Account That You Don’t Use

Another reason to think twice before closing credit card accounts? It could impact the length of your credit history, which accounts for 15% of your credit score. If you close old accounts, it could lower the average age of your credit history, and your score could take a dip as a result.

You Took Out New Loans to Pay Off Debt

Every time you apply for a loan or a credit card, the lender performs a hard pull. If you apply for multiple new loans or credit cards within a short stretch of time, it could temporarily lower your credit score.

Allow Some Time Before Checking Your Score

Credit scores continually fluctuate as information on your credit report gets updated. According to Equifax, your credit score can take 30 days or more to reflect payments you’ve made.

What Factors Impact Credit Scores?

As we discussed, your credit score is calculated based on the following, according to the FICO scoring model:

•   35% of your score is based on your payment history.

•   30% is based on the amount you owe creditors and your credit utilization rate. Ideally, your rate should be around 10% and not higher than 30%.

•   15% is based on the length of your credit history.

•   10% is based on the types of debt you have. A mix of installment debt (such as student loans, mortgage, car loan, personal loan) and credit card debt (or lines of credit) is preferable.

•   10% is based on new credit.

Pros and Cons of Tracking Your Credit Score

There are no drawbacks to tracking your credit score, except for the time it takes to obtain your report.

On the other hand, there are plenty of pros to monitoring your credit score. You’ll know where you stand regarding future loans and what potential lenders will see on your credit report. You’ll also be able to spot inaccurate or incomplete information that you can have removed, which can help boost your credit score.

How to Monitor Your Credit Score

Federal law allows you to view a free copy of your credit report from each of the three national credit bureaus (Experian, TransUnion, and Equifax) at AnnualCreditReport.com. Check the reports carefully, and if you find something you don’t agree with, file a dispute to try to have the information removed.

You can also enroll in a credit score monitoring service. These automated services notify you of changes to your credit report that might occur if you qualify for a new credit card or loan, or fall behind on loan payments.

The Takeaway

Your credit score might fluctuate without you realizing it. But a drop of 80 points may be worth investigating, as it could mean you pay significantly more to borrow money. You might be surprised to learn that if you apply for a new credit card, pay off the balance on a card, or close an old account, your credit score could be adversely affected.

It’s a good idea to obtain a copy of your credit report — it’s free — and check that the information given to the credit agencies is accurate. You can also help maintain a good credit score by not missing credit card and loan payments and by keeping your credit utilization ratio below 30%.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

Why did my credit score go down 80 points?

Your credit score is based on factors related to how you manage your debt. Bankruptcy or foreclosure will have an obvious effect on your score, but if you have not paid your bills on time, your credit utilization rate is higher than 30%, or you close old credit card accounts and reduce your credit history, you may see a dip. Also, your credit score may be affected if you apply for a number of credit cards or loans in a short space of time.

Why is my credit score going down if I pay everything on time?

Your payment history accounts for only 35% of your credit score. Other factors include your credit utilization rate, the length of your credit history, and the types of debt you have.

Why has my credit score gone down when nothing has changed?

Even if nothing has changed for you fiscally, you may still see fluctuations in your credit score. There are various reasons why, such as a higher-than-normal credit utilization ratio, inaccurate information in your credit report, or identity theft.

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Photo credit: iStock/katleho Seisa

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Whether you’re getting your ducks in a row to buy a house, trying to secure a lower interest rate on a future auto loan, or simply monitoring your credit as a personal finance best practice (good on you!), even a small dip in your credit score can make your stomach drop.

The good news: In the big scheme of things, a credit score drop of 10 points isn’t a huge deal — or at least it doesn’t have to be. While it’s smart to keep an eye on what’s going on, a 10-point drop could be due to a new credit application or an increase in your credit utilization, both of which are often temporary and easily made up for with positive credit behavior over time.

Below, we’ll look into some of the most common reasons your credit score may have taken a quick dip.

Why Did Your Credit Score Drop 10 Points?

Credit scores usually run from 300 to 850, so 10 points really isn’t that significant of a drop. Of course, if you happen to be just a few points shy of having “good” or “exceptional” credit, that drop could feel like a more substantial loss. Fortunately, these fluctuations are normal and usually easily made up for with on-time payments, which have the largest effect on your credit score.

Some common reasons for a 10-point credit score drop include:

Hard Credit Inquiries

If you’ve recently applied for a new loan or line of credit, the credit check the lender makes to assess your creditworthiness can affect your score. This category, known as “new credit,” accounts for 10% of your FICO score. The effect can be compounded if you apply for many new loans or lines of credit in a short amount of time.

Balance Increases

Fully 30% of your FICO score is based on the total amount you owe versus the amount of credit you have available. So if you recently made a larger purchase on credit or took out a new personal loan, you could see a ding to your score.

Account Closures

While paying off a credit card or loan could help increase your score (by lowering your total balance), closing an account can affect the age of your overall credit history. This accounts for 15% of your FICO score. In the case of a credit card closure, it could also lower your total available credit, which could actually increase your credit utilization ratio even as your total balance decreases. So if you’ve recently closed an account, again, you may see your score take a small dive.

Errors or Identity Fraud

Scary but true: An unexpected dip could point to something fishy on your credit report, be it a payment misreported to the credit bureaus as late or a brand-new account you don’t recognize.

In any case, unexpected changes to your credit score are a great reminder to take a look at your in-depth credit history at least once per year. (A credit score update typically occurs every 45 days.) There are plenty of ways to check your credit score without paying, and you can pull your full reports annually at annualcreditreport.com. From there, you can file disputes with the credit bureaus — and the reporting lenders.

Recommended: Why Did My Credit Score Drop After Dispute?

Should You Be Worried About Your Credit Score Dropping?

As unsettling as a small credit score dip can be, if you’re carefully monitoring your credit and actively working on good financial habits, it’s usually not something to worry about. (Credit score monitoring lets you keep tabs on your score and earn rewards points when it increases.)

If, however, your credit score is dropping because you’re borrowing more than you can afford to pay back, taking out too many new loans or lines of credit at once, increasing your utilization ratio, or making late payments, it could be a wake-up call to start moving back toward healthier financial habits.

And, of course, if your dropping score alerts you to fraudulent or erroneous information on your credit report, it’s well worth the effort it takes to file a dispute and clear up that misinformation — before it wreaks even more financial havoc in your life.

Reasons Your Credit Score Went Down

As mentioned above, some of the most common reasons a credit score could drop include increased credit utilization (even if only temporarily), hard inquiries on your report, account closures, and errors or fraudulent information in your credit history.

Keep in mind, too, that the younger and less robust your credit history, the more weight each individual occurrence will have in your score. For example, if you’re a young adult who got their first credit card only a year ago, and still has only that single line of credit, a hard inquiry or balance increase could affect your score more profoundly than it would for someone with 15 years of credit history, thousands of dollars in available credit, and several different types of credit lines and loans.

What Can You Do If Your Credit Score Dropped by 10 Points?

If you notice your credit score has dropped by 10 points, you’re likely already monitoring your credit — which is a great habit to be in. Depending on why exactly it dropped, you may simply need to wait the fluctuation out. (For instance, if your score dropped due to multiple hard inquiries, there’s little else to do but wait — and stop applying for new lines of credit or loans.)

If you’ve recently increased your credit utilization or made a large purchase on a credit card, focusing on paying the balance back as soon as possible may also help. As always, making on-time payments in full on every account you have is one of the most important steps toward building and maintaining a healthy credit history and credit score.

Examples of Credit Score Dropping

Here are a few scenarios where you might notice a dip in your credit score.

Say, for example, you just successfully applied for a new credit card and then decided to apply for an auto loan, too. Even if your credit score was healthy enough to handle both of those inquiries — and get you qualified for both the new card and the loan — you may see a temporary dip because of the multiple hard inquiries.

Or maybe you regularly use a credit card for everyday purchases and then pay it off in full each month to take advantage of cash-back rewards. But one day, your car breaks down, and you find yourself needing to quickly fork over $800 you weren’t expecting to spend — and you reach for your everyday credit card. Even if you pay the total off in full at the end of the month, the temporary increase in your balance could diminish your score for a while, depending on when the amount is reported to the bureaus.

How to Build Credit

If you’re paying close attention to your score because you’re figuring out how to build your credit, the good news is, you’re already on the right track. While it’s impossible to build great credit overnight, awareness of your score and the factors that contribute to it is a great first step toward excellent credit.

There are plenty of ways to build credit over time, but here are some of the most important tips:

•   Make your payments in full, on time, every time. Since payment history accounts for the largest chunk of your FICO score, being consistent with payments is a key to building credit. If you can, paying off your credit cards entirely each month can help you build your credit without paying interest or carrying a revolving balance.

•   Avoid taking out too many loans or lines of credit at once. Along with the negative impact of multiple hard inquiries, getting yourself into too much debt too fast can make it impossible to keep up with payments and keep your utilization ratio low.

•   Don’t unnecessarily close accounts. Even if you stop using one of your credit cards, consider leaving the account open so it can help lengthen your overall credit age. (Try to remember to use the card every once in a while and then immediately pay it back. The card issuer may automatically close the account if it’s inactive for too long.)

Allow Some Time Before Checking Your Score

Rome wasn’t built in a day, and neither was your credit score. While it can be tempting to constantly check in on your score to ensure it’s trending the right direction, it can take some time for the 10-point dip you noticed to pass — or for the changes you make in your daily habits to reflect in your score.

What is worth checking every day, however, is your spending. Knowing where every dollar you earn is going can give you insight into areas where you could afford to cut back and save more. Using a money tracker app can help.

Closing a Credit Card Account Can Hurt Your Score

As discussed above, closing a credit card account can hurt your score, even if you’ve paid off the card and no longer plan to regularly use it. That’s because having the account open can increase the length of your credit history and also provide you with more available credit, which can help keep your credit utilization low. In short, think twice before you close a credit card account once you pay it off!

What Factors Impact Credit Scores?

According to Experian, these are the factors that affect your credit score and how heavily they’re weighted in the calculation:

•   Payment history, which refers to your record of making on-time payments to all of your accounts: 35%

•   Amounts owed, which refers to the ratio of money you owe versus your available credit (aka credit utilization): 30%

•   Length of credit history, or the average age of your credit accounts: 15%

•   New credit, which takes into account the number of recent hard inquiries: 10%

•   Credit mix, which favors those who have different types of accounts (a mortgage, auto loan, and credit card rather than only credit cards, for example): 10%

Pros and Cons of Tracking Your Credit Score

Tracking your credit score is one of the best ways to ensure you’re fully informed about what’s going on with your report. It also gives you the biggest leg up on nipping potential fraudulent charges or errors in the bud before they can have a deeply negative impact on your file.

But there are cons, too. For instance, if you’re paying hyper-close attention to your credit score and checking every single day, small, normal fluctuations of 10 points or less could stress you out.

As with everything else in life, the key is balance. Keep track of your score, sure, but don’t obsess over it every single day. This is especially true if you’ve checked your report and ensured it’s free of errors or fraud. Just keep paying your bills on time and avoid overspending, and your score will eventually catch up with your good habits. (A spending app can help you manage budgeting and bill payment.)

How to Monitor Your Credit Score

These days, there are nearly endless ways to keep track of your credit score without having to pay for the privilege. Many credit card companies offer FICO score tracking as a free perk, and you may also be able to access your score via your online bank account.

Keep in mind, though, that your score is not the same as your report, and only viewing your full report gives you the comprehensive details about what factors are going into your score. Examples include payment history, how long your accounts have been open, and how many accounts you even have in the first place. Checking your credit report is the best way to get ahead of fraudulent or erroneous information, so make sure you give them a look at least once a year.

The Takeaway

While a credit score drop of 10 points can be unsettling, in many cases, it’s perfectly normal — and will normalize so long as you continue to maintain your good credit habits. If it’s an unexpected fluctuation, however, it’s worth looking over your credit report for errors or fraud.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

Why did my credit score randomly go down 10 points?

There are many reasons why a credit score might drop 10 points, including temporarily increased credit utilization, one or multiple hard inquiries on your file, or a recent account closure. To understand why your score is dropping, it’s a good idea to access your full credit report, which will help you ensure there’s no fraudulent activity or erroneously reported information in your file.

Is it normal for your credit score to fluctuate 10 points?

A credit score fluctuation of 10 points is fairly minimal and often normal, especially for those whose credit histories are younger and slimmer. If you only have a few accounts and they’re all relatively new, even small changes can have a relatively large impact on your score. However, as long as you keep making your on-time payments and avoid running up a large revolving credit card balance, these should automatically neutralize over time.

Why is my credit score going down if I pay everything on time?

Although payment history is one of the largest factors impacting credit score, it’s not the only one. Other reasons you might see your score decrease include a recent account closure, a change in your credit utilization ratio (caused by an account closure or taking out more debt), or a recent spate of hard inquiries on your file.

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Photo credit: iStock/Tempura

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Applying for credit cards isn’t something you should take lightly because it can lower your credit score with each application you submit. Reviewing a credit card application typically involves a hard credit inquiry, which usually lowers a score by perhaps five points or so. If you were to fill out several credit card applications at one time, that could have a significant impact on your score.

Still, while applying for a credit card can hurt your credit, there are a number of potential pluses to credit cards, from allowing you to build your credit history to earning rewards. Here’s how to navigate the effects of applying for credit on your credit score, as well as some alternatives to consider if you don’t think your score can currently weather it.

Hard vs Soft Credit Inquiries

To understand how applying for a credit card can hurt your score, it’s first important to know the difference between hard and soft credit inquiries.

A hard inquiry, also known as a hard pull or hard credit check, generally occurs when a lender is determining whether to loan you the funds you’ve applied for. This might happen if you’ve applied for a mortgage or a new credit card, for example.

On the other hand, a soft inquiry, or soft credit pull, tends to happen when someone runs a credit check to gather information without the express purpose of lending you money. For instance, a credit card issuer may do a soft pull in order to make a preapproval offer, or a potential employer might perform a soft inquiry as part of the application process. A soft credit inquiry also may happen when you check your credit report.

Perhaps the most important difference between a hard pull vs. a soft pull is how it impacts your credit scores. While hard credit inquiries show up on your credit report and affect your score, soft inquiries do not. Further, while soft pulls can be done without your consent, creditors need your approval to do a hard inquiry.

How Applying for Credit Cards Can Hurt Your Score

While your credit score won’t take a huge hit when you apply for a credit card, it will get dinged. Why? When you apply for a credit card, the card issuer will perform a hard inquiry to determine whether you’re a good candidate to lend money to.

Hard inquiries can lower your credit score because a new application can represent more risk for the card issuer. According to FICO®, a hard credit inquiry will generally affect the score on your credit report by five points or less. Those with few accounts or a thin credit history can experience a greater impact on their score. Additionally, multiple inquiries within a short period of time can exacerbate the negative effect on your credit score.

Hard pulls stay on your credit report for two years, though their impact on your credit scores typically vanishes after a year. It’s important to note that your score will see an impact whether or not you’re approved, as the hard inquiry is conducted either way.

Should You Apply for Multiple Credit Cards at Once?

Simply put, probably not. Applying for multiple credit cards at one time is likely to have a negative impact on your credit score. While it might make sense to apply for more than one job at a time, that’s not the way to go with credit cards. Instead, you should approach applying for credit cards strategically.

By applying for several cards over a short period, you might send the signal that you’re desperately seeking funds and headed for — or already in — trouble. You’ll appear risky to lenders and that will likely be reflected by a dip in your credit score.

Of course, this doesn’t mean you can’t have multiple credit cards. You’ll just want to take your time and space out your acquisitions. If you get rejected for a card, pause to figure out why, and then take steps to address the suspected weak spots. Once you’ve had time to build your credit, consider trying again.

How Often Can I Apply for a Credit Card Without Hurting My Credit?

Per Experian, one of the three major credit bureaus, it’s wise to wait at least six months in between credit card applications. If you apply for a number of credit cards within a few months, you could see more than the usual ding to your score that new credit inquiries typically cause. While the effects may be brief, Experian states that you could see a “potentially significant drop” in your score.

While six months is the minimum waiting period suggested, how often it’s appropriate to apply for new credit cards also depends on your financial specifics. For instance, if your application was denied due to your credit score and you still haven’t built it, then it may not make sense to apply again, even if six months have passed. Similarly, you might not choose to apply for a new card if you know you have another big lending application coming up, such as for a mortgage.

On the other hand, if you have a strong credit profile, your score may not take as much of a hit if you decide to apply for another card sooner to try to cash in on generous rewards or a hefty welcome bonus offer. Those who don’t yet have a credit history and are beginning to build a credit profile may also find it’s worthwhile to wait less time between applications.

Recommended: What Is the Average Credit Card Limit?

Can Applying for Credit Cards Help Your Score?

There are two sides to a coin and so it goes with applying for credit cards — there can be some upside when you apply for a new card.

This is partly because opening a new account effectively increases your credit limit. In turn, this can lower your credit utilization ratio, which is your outstanding balances compared to your overall credit limit. Credit utilization accounts for 30% of your credit score and is second in importance only to your payment history.

Another potential plus to opening a new card is that if you make on-time payments on your new card, your positive payment history can build your score over time. However, if you’re a credit card newbie and still working on establishing credit, you may not see the uptick in your score as quickly. This is because FICO requires you to have at least one account that’s been open for six months and one account that’s been reported to the credit bureau within the last six months to qualify for a credit score.

If you don’t already have a handful of credit card accounts, a new card also can positively impact your score because it’s adding another revolving account to your lineup. While your mix of account types only comprises 10% of your credit score, credit scoring models do look at and reflect this.

Recommended: When Are Credit Card Payments Due?

Does Applying for a Credit Card and Not Getting Approved Hurt Your Credit?

Your credit will be affected whether or not you’re approved for a credit card. That’s because when you submit a credit card application, a hard credit inquiry is conducted to determine if you’re eligible. The effects of that hard pull will apply regardless of the results.

However, your credit won’t face any consequences for the fact you were denied a credit card. That information won’t be reflected in your credit score, nor will it show up on your credit report.

Recommended: Tips for Using a Credit Card Responsibly

Things to Consider Before Applying for a Credit Card

Before you rush to apply for credit, make sure you’re ready. Here’s what to consider doing prior to applying.

•   Check your credit report: The first step is to get a copy of your credit report. To get your free report each year, go to AnnualCreditReport.com . As you review your credit report, look for any errors. If there are any, take steps to fix them before you approach a credit card issuer. Also check to see if you’ve had any other recent hard inquiries.

•   Consider any other upcoming credit applications: Be mindful about what’s on your horizon before moving forward with applying for a new credit card. For example, if you think that you will be applying for a mortgage or car loan soon, you may not want to apply for a card and rack up multiple inquiries at once. It may make sense to get your mortgage or car loan first and wait for a little while to go after the credit card.

•   Don’t plan to ditch your old cards: Just because you hope to get a new card, don’t start canceling the other cards in your wallet. Remember, length of credit history makes up 15% of your credit score. By canceling old cards, you’d also reduce your total available credit, which could drive up your credit utilization ratio if you have hefty balances on other cards.

•   Think about why you want to apply for a credit card: Lastly, have a little talk with yourself. A credit card rule of thumb is just because you can get a credit card doesn’t mean you need one. If you already have a credit card, what’s driving you to apply? How are you managing your existing credit card? If you’re not 100% sure you’ll be able to pay off the balance in full each month, think twice about getting it. When balances linger from month to month, it becomes costly due to interest racking up.

Recommended: How to Avoid Interest On a Credit Card

Alternatives to Credit Cards

If you’re worried about the effects that applying for a credit card may have on your credit score, know that you have other options. Instead of getting a credit card, you may also consider the following alternatives for financing:

•   Debit card: If you’re simply looking for another way to easily make purchases and avoid carrying around a wallet full of cash, consider a debit card. While a debit card does not allow you to build your credit score, applying for one does not require a hard pull and is often as easy as opening a bank account. Do note that debit cards tend to have less robust security protections on purchases compared to credit cards though.

•   Loan from a family member or friend: If you’re wary of weathering a hard credit inquiry right now, consider approaching a close family member or friend about borrowing the funds you need. Make sure to clearly agree to the terms of the loan agreement, including when you’ll pay back the money. Also realize the potential implications for your personal relationship if you don’t make good on paying this person back.

•   Salary advance: Another option may be to ask your employer if you can borrow funds from a future paycheck. This can allow you to borrow money in a pinch without needing to go through the formal credit application process. Employers typically won’t charge fees or interest, though you may have to pay an administration fee or interest if your employer relies on a third party for the service.

The Takeaway

Applying for a credit card may be a simple process in terms of filling out the forms, but that doesn’t mean it’s something to take lightly. It can have very real effects on your credit score due to the fact that a formal application requires a hard credit inquiry. Thus, applying for a credit card is always something you should consider carefully and do responsibly.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How much does my credit score go down when I apply for a new card?

Typically, when you apply for a new credit card, your score will only go down temporarily by five points or even less. This will, however, depend on other factors related to your credit status.

How bad does a credit application hurt your credit?

In most cases, a hard credit inquiry as part of a credit card application will temporarily decrease your credit score by five points or less.

How often can I apply for a credit card without hurting my credit?

Typically, hard inquiries stay on your credit report for two years, but only impact your FICO score for one year. You might therefore want to space out applying for a credit card and do so only once every six months or so.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Have you ever watched somebody pull out a set of jumper cables and thought, “I really should learn how to jump-start a car someday”?

It isn’t a difficult process. But to avoid damaging your car or hurting yourself, you should perform each step carefully, in the correct order, and with the right equipment.

By learning how to properly jump-start a car battery by yourself, you can save time, money, and hassle. In this guide, we’ll cover how to jump-start a car, how long it can take, and what you’ll need to get the job done.

How To Jump-start a Vehicle

Whether your battery is temporarily drained of power or truly dead, there are a few ways to get your car back on the road. The most important step is learning how before you’re stuck on the side of the road.

The most common method is to use a set of jumper cables and another car’s battery to give yours the charge it needs to get started. Or if you keep a portable jump-starter in your car, you may be able to give your battery a needed boost without anyone else’s help. And if you drive a car with a manual transmission, it might be possible to “pop the clutch” or “push-start” the car.

By the way, it helps if you have a good battery without a lot of corrosion on the posts. (A 12-volt battery typically lasts around six years. Batteries can deteriorate faster if you don’t drive much.) You may want to make checking the battery part of your routine to help save money on car maintenance.

Recommended: How Much Does Insurance Go Up After an Accident?

How to Jump-start a Vehicle with Jumper Cables

Before you try to jump-start any vehicle for the first time, it’s a good idea to read the owner’s manual, just in case there is anything you should know about that specific model. But the steps are basically the same no matter what you’re driving.

Get Out Your Jumper Cables

Jumper cables come in sets of two: The positive cable has red clamp at each end, and the negative cable has black clamps. You’ll need both cables to jump-start a car.

Jumper cables aren’t standard equipment with most vehicles, so you’ll have to purchase a set to keep in your trunk. You can purchase a new set for about $20-$40. You may want to keep a pair of gloves and safety glasses with the cables.

Get Another Car to Cozy Up Next to Yours

If you’re at home and have a second car, you might even be able to do this by yourself. Otherwise you’ll have to call a friend or flag down a Good Samaritan. The two cars should be parked close enough that you can connect the cables without pulling them too tight, but leave enough room so you can move comfortably between the cars. Both cars should have their engine turned off and the emergency brake on.

Open the Hood on Each Car

Open the hood and locate the battery in each car. Then look for the negative and positive terminals on each battery. The positive terminal should have a plus sign (+) and/or a red cover. The negative terminal should have a minus sign (-) and/or a black cover.

Connect the Jumper Cables

Start with the dead-battery car. Attach one red clamp from the positive cable to the dead battery’s positive terminal. The clamp should “bite” through any corrosion and onto the metal terminal. If you have the black clamp of the other cable near the dead-battery car, be sure it isn’t touching any metal surfaces before you move over to attach both clamps to the booster (working) car.

Move over to the booster car. Attach the other red clamp from the positive cable to the positive terminal on the booster car’s battery. Then attach a black clamp from the negative cable to the booster battery’s negative terminal.

Go back to the dead-battery car. Attach the other black clamp from the negative cable to an unpainted metal surface on the engine. (You can look for an unpainted bolt or bracket that is several inches away from the battery.)

Check the cables to be sure they aren’t dangling or exposed to any moving parts in either vehicle.

Turn Off All Accessories

Before starting the booster car, check that all electronics are turned off in the dead-battery car. This includes hazard lights, the air conditioner or heater, radio, cell phone charger, etc.

Start the Booster Car

Put the booster car in park, start the engine, and let it idle for a few minutes. Don’t race the engine, but gently rev it to a bit above idle for 30 seconds or so to help the charge get to the dead battery. An older battery may take more time to charge.

Start the Dead-Battery Car

Try starting the car with the dead battery, and if it works, let it idle for several minutes. (Ask the driver of the other car to please wait while you do this.)

If the disabled car doesn’t start, disconnect the black clamp from the dead battery, check to make sure all your other connections are good, then replace the black clamp to the dead battery. Start the booster car again and let it idle for five minutes. Then try again to start the non-working car. If you repeat this process a couple of times and the car still won’t start, you may have to call for a tow truck.

Disconnect the Jumper Cables

Once the dead-battery car is running, you can disconnect the four clamps, working in reverse order. Be careful to remove the black clamp from the dead-battery car first, and keep it away from any metal and the other cable clamps while you work your way through the rest of the clamps. Then remove the black clamp from the working car, the red clamp from the good battery, and the red clamp from the dead battery.

Replace the plastic post protectors if either car has them. Keep fingers, clothing, and equipment away from any moving parts.

Keep the Dead-Battery Car’s Engine Running

Let the engine in the car you jump-started run for about 20 minutes so the alternator can recharge the battery. Drive somewhere safe (home or to a friend’s house, for example) before you shut off the car and try to start it up again.

If the car won’t start up again, you may have to get another jump-start or buy a new battery. You may even want to take the car straight to a mechanic to have the battery tested and, if necessary, replaced.

How to Jump-start a Car with a Portable Jump-starter Device

If you like the idea of being completely self-sufficient, you may want to purchase a portable jump-starter to keep in your car. The portable unit can take the place of a second vehicle when you need to charge your battery. Here’s how it works:

Confirm That the Unit’s Battery Is Charged

Before you stash the battery pack in your car, check that it has enough juice. Units typically plug into a common household outlet, and take an hour or longer to charge. Read the directions before you use the charger for the first time.

Attach the Cables

The unit will have two cables coming out of it: one with a red clamp and one with a black clamp. The unit and your car should be turned off. Then, with your car in park, attach the cable with the red clamp to the positive post on your car battery, and the cable with the black clamp to a bare metal area on the car. (Check your device’s directions for specifics.) Ensure that the unit won’t fall over or into the engine when you start the car.

Turn on the Power

When you’re ready, hit the power switch on the jump-starter device.

Start Your Car

Try to start your engine. If the problem is a dead battery, the engine should turn over.

Disconnect the Clamps

Just as you would when using jumper cables, let the car run above idle for a few minutes to help the battery charge. Then, with the car still running, turn off the power to the device and carefully disconnect the black and red clamps. Drive the car to a safe place or take it to a mechanic to have the battery tested.

To charge a motorcycle, the steps are pretty much the same if you’re using the portable jump-starter. It may be better for your bike than using a car battery, and easier than using another motorcycle. You also can try push-starting your motorcycle.

Recommended: How to Get Car Insurance

How to Push Start a Manual Transmission

This method is sometimes called “bump starting,” “clutch starting,” or “popping the clutch.” The idea is to get the car moving fast enough (by going downhill, getting some helpers to push it, or pushing it bumper-to-bumper with another car) that you can put it in gear, quickly let out the clutch, and get the engine to turn over. (If you enjoy learning new terms, consider adding some car insurance terms to your repertoire.)

When you get a push, warn your helpers that the car may jerk a bit when you pop the clutch. If someone offers to use their car to push you, be sure you can do so without denting or scratching either car.

Recommended: How to Get Car Insurance

Get into Gear

Depress the clutch pedal, and put the car into second gear.

Turn the Key Part Way

Turn the key one step to turn on the car, but not far enough to start the engine.

Get the Car Moving

If you’re at the top of the hill, you may be able to do this on your own, just by taking your foot off the brake and letting it roll. But you’ll likely need other people or another car to push your car. Keep the clutch pedal down.

Pop the Clutch

When the car is moving about 5 mph, quickly let your foot off the clutch pedal. The car may jerk a bit and the engine should turn over and start. If it doesn’t, you can try depressing and popping the clutch again while the car is still rolling.

Words of Caution Before Jump-starting Your Car

Once you learn how to do it, jump-starting your car can be fairly simple. But because there may be sparks, and batteries can explode, it’s always important to go through each step cautiously.

•   Do keep your face as far from the battery as you can while you’re attaching the cables.

•   Don’t let the clamps dangle near any metal while you’re attaching them. Don’t cross the cables when you’re attaching them to the batteries. Do keep the cables clear of the engine when you’re ready to start the cars.

•   Do avoid connecting all four clamps to battery posts. It’s safer to attach the black clamp to bare metal on the disabled car.

How Long Will It Take To Jump-start Your Car?

Once you know the basics of jump-starting a battery, you can expect it to take 15 to 20 minutes. Of course, waiting until you find another motorist to help you could add to the overall time.

If you’re a first-timer, it may take longer than 20 minutes. But you can cut down that time just by knowing where your jumper cables are, and where your car battery and battery terminals are located. (Speaking of first-timers, new drivers may benefit from these car insurance tips for first-time drivers.)

Calling for Help

If you don’t feel comfortable jump-starting a car yourself or don’t feel safe where you are, you can always call a pro for help when your battery dies. The jump-start or tow might even be free if you have a roadside assistance plan through your car insurance policy. Most plans include jump-starts as a basic service, but you should verify in advance what your coverage offers.

Recommended: How to Lower Car Insurance & Save Money

The Takeaway

Jump-starting a car isn’t that complicated, and it doesn’t take long — if you have the right equipment and know the proper steps. Still, it’s important to use caution as you go through the process to avoid hurting yourself or damaging your vehicle. The hardest part might be finding someone who will let you use their car for the jump (or give you a push, if you’re trying that method). And you’ll have to be in a spot where you can park two cars close enough together that you can use your jumper cables.

If you don’t want to — or can’t — jump-start your car, you may decide it’s easier and safer to call roadside assistance. You can purchase roadside assistance through an auto club, and many car insurance companies offer inexpensive plan options as part of their coverage. If you haven’t had a personal insurance planning session lately, this might be a good time to review your options.

And if you’re looking for the best car insurance for your needs, it can help to compare your current auto insurance policy to what other top insurers are offering.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

How long does it take to jump-start a car?

The process — attaching the cables, starting the cars and running both for a few minutes, then detaching the cables — should take just a few minutes. It’s a good idea, though, to keep the booster car around for a few minutes after that, just to be sure the boosted car keeps running and can get back on the road.

How long should you let a car run after you jump-start it?

You should let a car idle for several minutes after you jump-start it, to be sure you have a sufficient charge. After that, it’s important to let it keep running or drive it for at least 20 minutes so the battery can fully charge.

Can you jump-start a car alone?

It’s possible to jump-start a car alone if you’re home and have a second car handy to use as a booster car, or if you have a portable jump-starting device with you.

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Photo credit: iStock/evrim ertik
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Ever wondered if location makes a difference in the size of your paycheck? New Yorkers on average earn an annual salary of $74,870, according to a Forbes analysis of data from the Bureau of Labor Statistics (BLS). For perspective, the average annual salary in the U.S. is $63,795 according to the national average wage index.

Here’s a deeper dive into the average salary in New York by age and location.

Average Salary in New York by Age in 2024

The average income by age in New York increases with age until people hit their mid-60s. Adults under 25 earn an average annual salary of $39,366, while those in the 25 to 44-year-old range pull in an average income of $85,570. Workers in the 45- to 64-year-old range earn the most, with average annual pay of $88,827.

That makes sense, given that most people don’t reach their highest-earning years until their 40s. The average salary in New York by age drops to $51,837 for those 65 and older, which can be attributed to more people leaving the workforce to retire or cutting back on the number of hours worked.3

Using a money tracker can help you stay on top of your income and expenses through every stage of your earnings journey.

Recommended: Highest Paying Jobs by State

Average Salary in New York by City in 2024

The average salary in New York is higher than the average pay in the United States but earnings aren’t the same in every city.

If you’re using a budget planner app to keep a close eye on your finances, your choice of hometown can make a difference in how far your money goes. Here’s a comparison of the top 10 highest-earning cities in New York, according to ZipRecruiter.

City	Annual Salary
Queens	$103,148
Islip	$101,069
Albany	$99,106
Monroe	$98,563
Bronx	$96,858
Brooklyn	$96,659
Deer Park	$95,266
Vernon	$94,513
Oyster Bay	$93,458
Borough of Queens	$92,914

In these cities, the average monthly salary in New York ranges from $8,595 at the high end to $7,742 at the low end. By comparison, the average salary in the U.S. breaks down to $5,316 monthly.

Recommended: How to Calculate Your Net Worth

Average Salary in New York by County in 2024

What’s considered a good entry-level salary or annual salary in New York can vary by county. Here’s a look at the average salary for 10 counties across the state, according to BLS data.

County	Annual Salary
New York	$157,465
Westchester	$95,004
Albany	$79,768
Nassau	$78,312
Saratoga	$68,640
Erie	$66,300
Richmond	$65,884
Kings	$60,476
Oneida	$60,008
Broome	$59,332

Examples of the Highest-Paying Jobs in New York

The highest-paying jobs in New York pay well over $100,000 annually, with some of the best-paying jobs topping $200,000 in yearly salary on average. Even the top 100 highest-paying jobs offer an entry-level salary in the six-figure range.

Have your sights set on landing a six-figure salary job? Some of the most lucrative job titles in New York, according to Zippia, include:

•   Finance Services Director: $226,494

•   Hospitalist Physician: $215,888

•   President/Chief Executive Officer: $201,998

•   Executive Vice President: $192,649

•   Internal Medicine Physician: $192,457

•   Chief Administrative Officer: $188,629

•   Operator and Truck Driver: $185,868

As you can see from this list, many of the highest-paying jobs in New York are in the business and medical fields, though some may be good jobs for introverts. Your average earnings can depend on your years of experience, education, and chosen career path.

The Takeaway

Understanding the average income by age, for New York or any other state, can give you an idea of how you compare to other workers. It’s important to remember, however, that earning six figures or more isn’t an automatic guarantee that you’ll be financially secure. Student loan debt, high housing costs, and inflation can test just how far your money goes.

If you’re working your way up the career ladder while paying down debt and focusing on savings, your net worth may be a better metric to track. You can use a net worth calculator by age to see where you should be, compared to people in your age range. If you’re ahead, then you know your financial plan is working. And if you’re behind, you can work out a strategy for getting caught up.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What is a good average salary in New York?

A “good” average salary in New York state depends on the cost of living in your city or county and your spending habits. Your marital status can also make a difference. A single person living in New York City might be able to live comfortably on $70,000 a year, while a couple with two kids may need $300,000 a year in salary to cover expenses.

What is the average gross salary in New York?

The average New Yorker earns an annual salary of $74,870. That’s nearly $15,000 more per year than the average worker in the U.S. earns.

What is the average income per person in New York?

The average income per capita in New York is $47,173. This number is below the average salary figure for New York overall, as per capita income counts all people, including those who are not working or earning income.

What is a livable wage in New York?

A livable wage for a single person with no children in New York is $26.60 per hour. If you assume a 40-hour workweek and 50 weeks of work per year, with two off for vacation, that adds up to $53,200 per year. Meanwhile, to earn a livable wage, a married couple with two kids would need $33.53 per hour if both parents work, or $46.47 per hour if only one works. That’s an annual income of $69,742 or $96,658, based on the same 40-hour week and 50 weeks of work per year.

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Photo credit: iStock/LeoPatrizi

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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