If I get a new credit card with $5000 credit line and 0% intro APR for the first year, and use all the credit limit at the beginning, will this drops my credit score?

If I pay back this money like $500 per month through 10 months, will I get back all the lost scores? Can I even build credit( I mean improve my credit score) by doing this? (Although my reason for doing this is needing a 0% loan at the moment, but I also like to prevent my credit score too).

  • This is an advice rather than an answer but be careful of the fee that is paid up front. Many times these debt consolidation schemes end up with the person having more debt, not less. Why not just aggressively pay down the credit cards you have? Let the high interest rate motivate you to do it sooner. If you can do it in 6 months, rather than the planned 10 you will be far better off.
    – Pete B.
    Sep 28, 2021 at 10:13
  • @Pete B.: New cards offering an introductory 0% rate on purchases generally don't have an upfront fee, at least in my experience. The fee is usually on balance transfers, whether to a new card or as an offer on an existing one. So if the OP needs to make a big purchase now, and is certain of being able to pay it off before the 0% period ends, it might be a good deal.
    – jamesqf
    Sep 28, 2021 at 16:43
  • @jamesqf my experience is exactly the opposite. It is in the fine print but is almost always there and normally 5% on the full balance.
    – Pete B.
    Sep 28, 2021 at 16:50
  • @Pete B.: I have never seen that, and I've had a number of cards with 0% intro rates. The interest charge only happens if you don't pay off the balance before the 0% period ends.
    – jamesqf
    Sep 29, 2021 at 16:38

2 Answers 2


Credit scores aren't that deterministic. There are lots of factors that go into your score, and it's impossible to be certain how a single action (other than missing a payment) will affect your credit.

In general, though, opening a new account and maxing it out will reduce your credit score, but it will go back up over time so long as you pay down the balance and do not miss any payments. It may no to go back completely, but a good payment history, which is the main factor in your credit score, should have a positive impact.

However, I'd make sure you understand the reason for "needing a 0% loan". Are you spending more than you make? If you have an unexpected expense like a medical bill - can you negotiate with the provider for a payment plan or a reduction in the total bill? Do you have a realistic plan to pay everything back before the intro rate runs out that doesn't require any lucky breaks?

It's very important to have a firm control over your finances before trying to use credit cards as "loans". It doesn't take much as all to go from "free money" (or miles) to crushing credit card debt.

  • Thank you for your advice. Yes, I am sure about what I am doing and I have the repayment plan and a backup money, etc. But I don't want to spend cash at the moment, also don't want to get loans with 3-4-5% or higher interest rates.
    – user109157
    Sep 28, 2021 at 2:36
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    @ensan3kamel Why go into debt for the sake of keeping a pile of cash on hand? You're usually better off spending the cash now and going into debt only when and if you find yourself with unexpected expenses you can't pay immediately. Taking out a loan to preserve a cash emergency fund defeats the purpose. Sep 28, 2021 at 13:39

The reasons you have a credit score is to convince lenders that you are financially responsible.

Some things will drop your score: applying for loan/credit, getting new credit, doing things to increase your utilization percentage, paying late.

If I get a new credit card with $5000 credit line and 0% intro APR for the first year, and use all the credit limit at the beginning, will this drops my credit score?

So in the near term applying for the credit card will impact your score. Getting the new card will impact your score. Using a significant amount of your credit limit will hurt your score.

Eventually these either go away due to time, or as you pay down what you borrowed.

If you are going to need to borrow money in the near future for a car or house then you should be concerned about activities that will lower your score before applying for those loans, but otherwise a short drop due to the new credit is not a concern.

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