With credit card debt at high levels, it’s important to remember that applying for a card can ding your credit score. Veuer’s Matt Hoffman reports.
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00:00Credit card debt is at its highest level since the Federal Reserve started reporting it in 2003,
00:05according to the Chicago Sun-Times.
00:07And credit cards can pose their own financial risks,
00:09not just from debt, but also from the application process.
00:13Applying for a credit card triggers a hard inquiry on your credit report,
00:17which can lower your credit score.
00:19Business Insider says this penalty usually only lasts a few months,
00:22but several in a short period of time can have a more severe impact.
00:26So try to find a card for which you'll be a good fit on your first try.
00:30On a positive note, credit card interest rates are expected to fall this year,
00:33according to Fox Business.
00:35So if you do get approved for a card, spending money won't be quite as expensive.