What is the general effect of applying for new credit cards on your FICO score?

When you apply for new credit cards, it can lead to a decrease in your FICO score. This is primarily due to what's known as a hard inquiry or hard pull on your credit report, which occurs when a lender checks your credit as part of their decision-making process. Each hard inquiry can lower your credit score by a few points, typically for a short period, as it may indicate to lenders that you are seeking more credit, which could suggest potential financial distress.

Additionally, opening many new accounts in a short timeframe can signal risk to creditors, thus contributing to a further potential decline in your score. It's important to manage credit applications carefully to avoid unnecessary hits to your credit score and maintain a healthier financial profile.

In contrast, while applying for a new card might improve available credit, the immediate impact on the FICO score from inquiries outweighs this benefit, especially in the short term.