Understanding How Synchrony Bank Affects Your Credit Score

Synchrony Bank can significantly impact your credit score, and understanding how it affects you is crucial for maintaining good credit health.

Opening a Synchrony Bank credit card can lead to a temporary credit score drop, typically ranging from 5 to 40 points, due to the hard inquiry and new account opening.

This initial drop is usually short-lived, and your credit score will bounce back as you make on-time payments and keep your credit utilization ratio low.

A good credit score can open doors to better loan terms, lower interest rates, and even higher credit limits, making Synchrony Bank a valuable tool for credit management.

Broaden your view: Does Opening Credit Cards Affect Score

Synchrony Bank credit cards can have a significant impact on your credit score, but it's not all bad news. You can view your VantageScore credit score for free with a Synchrony Bank credit card, which is based on your TransUnion credit report and updated monthly.

Synchrony Bank does a hard pull on your credit report whenever you apply for one of its credit cards. This usually results in a slight decrease in your credit score, but the effect only lasts for a short period of time.

To give you a better idea of how Synchrony Bank credit cards might affect your credit score, here are some key factors to consider:

You'll want to be cautious with credit cards because they can hurt your scores in several ways. Missed payments can hurt your scores, and if you stop making payments, the card issuer could send your account to collections, which might hurt your scores even more.

Curious to learn more? Check out: How to Make Credit Card Payments to Increase Credit Score

Opening and regularly using a credit card can help your credit scores by showing a long history of on-time payments. You can request free copies of your credit reports from AnnualCreditReport.com, or directly from each bureau—Equifax, Experian and TransUnion.

Making at least your minimum payment each month can help improve your credit scores. A low credit utilization ratio is also best for your credit scores, and the people who have the top credit scores tend to have overall utilization rates under 10%.

Paying down the balance before the end of your billing cycle can help maintain a low utilization ratio. You can calculate your overall utilization rate by dividing the sum of your revolving accounts' balances by the sum of their credit limits.

A low utilization ratio is actually better than no utilization, as it shows you're using and managing your cards. To avoid interest charges, pay off your balance in full before the due date.

Here are some tips to improve your credit score:

• Make at least your minimum payment each month

• Pay down the balance before the end of your billing cycle to maintain a low utilization rate

• Keep old credit cards open to increase your overall available credit

• Sparingly apply for new credit cards to decrease the negative impacts of hard inquiries and new accounts

On a similar theme: Understanding Credit Scores

To get approved by Synchrony Bank, you'll need to be at least 18 years old with a U.S. mailing address and a valid SSN or ITIN.

You'll also need fair credit or better to qualify for most Synchrony Bank credit cards, such as the Lowe's Store Card, Amazon Store Card, and JCPenney Credit Card.

Having good credit or better is required for the Sam's Club Credit Card and Venmo Credit Card.

Here's a quick rundown of the credit requirements for popular Synchrony Bank credit cards:

To get approved for a Synchrony Bank credit card, you'll need to meet their basic requirements. You must be at least 18 years old, have a U.S. mailing address, and a valid Social Security number or Individual Taxpayer Identification Number.

Synchrony Bank also looks at your credit history, and the specific requirements vary depending on the card you're applying for. Here's a breakdown of the credit requirements for some popular Synchrony Bank credit cards:

In addition to credit requirements, Synchrony Bank will also consider your income and existing debts when evaluating your application. They want to make sure you have enough income to make payments on the card and that you're not overextending yourself with too much debt.

When you apply for a Synchrony Bank credit card, you'll need to consider the interest rates and fees associated with it. The purchase interest rate and fees are specific to the applicant, based on their credit score.

As of June 30, 2024, the advertised purchase APRs for this card are subject to change over time. You should check the rates before applying to get an accurate idea of what you'll be paying.

Here's a breakdown of the typical APRs for different credit scores:

The purchase APR for this card is variable, meaning it can go up or down based on the index listed in the details. If you're not familiar with APRs, it's worth learning more about how they work and the differences between fixed and variable APRs.

Managing your Synchrony Bank credit card requires attention to your payments. Paying your minimum payment on time is crucial to maintaining good credit scores.

Ideally, you can pay your bill in full each month to avoid interest charges on your purchases. However, even if that's not an option right now, making on-time payments can still help your credit scores.

Setting up autopay for your minimum payment amount can help you avoid accidentally missing a payment. This can give you peace of mind and ensure your payments are made on time.

If you miss a payment, try to catch up as quickly as possible. The further behind you fall, the worse it can be for your credit scores.

Here's a quick guide to keeping your payments on track: