Opening a new credit account can temporarily lower your credit score. This is because:
- A hard inquiry is added to your credit report when you apply for credit.
- Your average account age decreases, which can negatively impact your score.
- Your credit utilisation may increase if you use a large portion of your new credit limit.
However, if you manage the account responsibly by making payments on time and keeping your usage low, your score can improve over time.
Tips:
- We recommend using between 10% and 70% of your credit limit at any time (this is known as your credit usage), and spreading it evenly across all your cards.
- Avoid applying for multiple accounts in a short period.
- Keep older accounts open to maintain a longer credit history.
If you notice incorrect information on your report, you can raise a dispute with Experian Australia.
Note: This information is for general guidance only and isn’t financial advice. Always consider your own circumstances or seek independent advice if you’re unsure about what’s right for you.