New credit is 10% of your credit score. New open accounts drop your score for a year. Now, the reason why FICO dropped your score for a year when you open up a new car loan, home loan, credit card, whatever is because it’s saying, “Until you can prove you can handle this new debt, we’ll take the points away, and as long as you weren’t late on the 13th month, you get your points back.”
As such, you always want to plan one year ahead of the curve with everything you do with your big purchases, especially real estate, real estate auto loans for example. One year prior to that, you probably shouldn’t be opening up any new accounts unless you’re short a few credit cards to help build it up. New inquiries can drop it two to three points.
In most cases, opening any type will drop your score. Two or more inquiries within 90 days will also drop your score, byan average of 5-20 points. One inquiry within 90 days can drop it two to three points. It’s very small. Now, the good news is that your points are returned within 90 days of each inquiry. You get your points back after 90 days.
There’s companies out there saying, “Hey, pay us 500 bucks and we’ll take your inquiries off.” Don’t do that. You’re going to get your points back in 90 days anyway, and that’s about how long it’ll take the company you paid to do AND there’s a good chance they’ll upset the credit bureaus or red flag your account in the process. Don’t pay the company, just wait the 90 days.
Also, be careful about your inquiries. The more inquiries you receive over a 90-day period, the higher the score loss. Again, consult with a professional before you start making those moves.