Will opening up a new credit account lower my credit score??

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I'm working on improving my credit score since I filed bankruptcy two years ago. I was told to open up a couple of credit cards. I just opened up a Lowe's credit card a week ago. As soon as I told that to my loan officer, he said that that could potentially lower my credit score initially, but I've read that it could actually help my credit score which is what I'm most concerned with and the only reason I applied for this card. I have a Capital One account that I have been paying on for six months. My biggest concern is that I want to refinance my house and my loan officer advised I try to get my score up a bit so that I could qualify for a better interest rate. I'm currently at 600 and the interest rate quoted to me was a bit too high, so I'd rather improve my score before I proceed with the refinance. Please advise. Thanks.

Will opening up a new credit account lower my credit score??

Ok, here's the deal. Your loan officer's right about that, but I'll explain something. Let me give you a breakdown of what makes up your score first to give you a better idea of what I'm talking about:

1. 35% payment history

2. 30% total debt vs. available credit

3. 15% length of time establishing credit (average age of accounts)

4. 10% types of credit established

5. 10% inquiries and new accounts

Anytime that you apply for credit regardless of whether you're approved or not, it creates a "hard inquiry" that does in fact lower your score several points and if you're approved the account usually takes a minimum of 6 months for it to reflect on your report and raise your score again, hence how you were able to get the Lowe's card after paying on the Capital One for 6 months.

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Will opening up a new credit account lower my credit score??

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