New Delhi, April 22 -- While getting a new credit card can be a sound financial choice, it can have negative effects on your credit score. No matter your reason for getting a new credit card, be it to build your credit more or earn better rewards incentive, it's very important to understand how new credit cards will influence your score.

Let's get into the details of how a new credit card affects your credit score.

Every single time you apply for a new credit card the lender does a hard inquiry of your credit report to assess your credit worthiness. The credit bureaus will document this hard inquiry and this could decrease your score by 5-10 points temporarily. As long as you continue good credit behaviour, which is expected, this drop ...