This Holiday Season A New Store Credit Card Could Cost $15,996 More on a $250,000 30-Yr. Mortgage

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A typical new store credit card with a $2500 limit could drop a credit score by as much as 52 points

This holiday season, if a person's credit score goes down, his or her mortgage rate can go up when applying for a loan. And, according to simulations of credit score changes among adults 18+ conducted by, opening a new credit card account with a $2500 limit (which many Americans will do this holiday season) could knock a credit score down by as much as 52 points. Or, increasing a credit card balance by $2,000 can lower credit scores by as much as 68 points. So, based on recently published mortgage rates associated with credit scores, the effect of a 40-point drop could be paying $15,996 more on a $250,000 30-year fixed mortgage.

According to Carrie Coghill, Director of Consumer Education at, "If you are going to be in the market for a home, saving 10% on purchases by obtaining a new credit card from a retailer this holiday season can cost thousands in the end. First time homebuyers should be especially wary of new cards because consumers with shorter credit histories had the greatest reduction in the credit scores during our simulations. New credit cards and mortgages do not mix," she warned. based its findings on members who conducted 78 simulations on the Credit Score Predictor. The results are:

Action - Range of Credit Score Changes

Open new credit card with $2,500 limit -52 points to +14 points

Increase balance $2,000 on existing card -68 points to +16 points

Add 1 credit inquiry plus getting
1 new credit card with a $2,500 limit -55 points to +14 points

The Mortgage Difference table, which was derived from a Mortgage Calculator, shows that a few points can cost a person tens of thousands of dollars.                   

For a complete table of possible cost of changes in credit score and associated mortgages ranging from $50,000 to $300,000, please contact Aaron Berger at aaron.berger(at)mediafirstpr(dot)com.

Please note, for consumers to simulate their score, they must be members of The Credit Score Predictor requires access to a member's credit scores and history to perform simulations. Anyone can have a free trial membership to for seven days. After seven days, a person automatically becomes a paying member, or he/she can cancel before the trial period ends and not be charged.

About is the leading online consumer credit site providing consumers with affordable, unlimited access to all three of their credit scores and complete credit profile. Launched in 2009 with an award-winning advertising campaign featuring actor, economist, and lawyer, Ben Stein, has serviced more than 750,000 members. Members have unlimited access to their credit scores from all three bureaus, a complete credit profile, and expert tips, articles, videos and other educational information about credit management. For more information, go to

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Aaron Berger

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