Answer :
The correct answer is:
When you apply for a credit card, it can impact different categories in your credit score:
- Age of credit: This refers to how long you have had credit accounts. If you have a credit card for a long time, it can help this category.
- New credit: This refers to recently opened credit accounts. Opening a new credit card can hurt this category.
- Credit mix: This looks at the types of credit accounts you have, like credit cards, loans, etc. Having a mix of credit accounts can help this category.
Therefore, the category impact of applying for a credit card would be:
- Age of credit - help
- New credit - hurt
- Credit mix - help
This means that applying for a new credit card can potentially help your credit mix but may hurt the age of credit and new credit categories in your credit score.
