Does Opening Store Credit Cards Hurt Your Credit?

How does opening a store credit card affect your credit score?

But the reality is you may be impulsively signing up for a low-limit card that could hurt your credit.

Credit expert John Ulzheimer warns that opening a new store card could hurt your credit score by: Having an outsize impact on your credit usage, which is a big factor in credit scores.

Causing an inquiry on your

Is it bad to open store credit cards?

There’s no right or wrong answer when it comes to store credit cards. If it’s a bad idea for you to sign up for another card, making it a retail-issued card just makes it worse. But if you have good credit and can take advantage of the discounts that come with the card without going overboard, it might be useful.

Is it better to cancel unused credit cards or keep them?

Closing unused credit card accounts may sound like a good idea, but it could hurt your credit score because of increased utilization and, eventually, shorter credit history.

Is it a good idea to close unused credit cards?

If done strategically, closing an unused credit card can help your credit score, rather than hurt it. That being said, if the card is one of your oldest, you should leave it open. The only reason to close an old account that’s in good standing is to avoid an annual fee.