Does Applying for a Credit Card Hurt Your Credit Score in Canada?

Short answer: yes, a little, and not for long. When you apply, the issuer checks your credit report, which records a hard inquiry. For most people a single inquiry lowers the score by a few points, and the effect fades within months.

Hard inquiries vs soft inquiries

Checking your own credit score through your bank or a free credit app is a soft inquiry. It never lowers your score.

How long does a hard inquiry stay on your report?

In Canada, Equifax keeps hard inquiries on your credit report for about three years, and TransUnion can keep them longer. The effect on your score is much shorter. After about a year, a single inquiry usually makes little difference.

When applications do matter

• Several applications close together. Lenders can read many recent inquiries as a sign you need credit, which can lead to declines. Space out applications by a few months if you can.
• A thin credit file. If you're new to credit, each inquiry carries more weight. A student card or a basic no-fee card such as the CIBC Classic Visa is a gentler start.
• Before a mortgage or car loan. Avoid new card applications in the months before a major loan.

A new card can also help your score

Once approved, the new card adds to your total available credit. If your balances stay the same, the share of credit you're using drops, which helps your score. Over time, a long record of on-time payments matters far more than the inquiry did.

How to apply wisely

1. Check your own score first, a soft inquiry, to see where you stand.
2. Confirm you meet the requirements, including any minimum income. See credit card income requirements.
3. Pick the right card the first time. Compare the fine print in our teardowns, or use Card Match to rank cards against your spending before you apply.

Credit scores in Canada range from 300 to 900. Payment history and how much of your credit you use count far more than inquiries.