does applying for credit cards and being declined affect your credit scoring?

Answer 1

No it doesn't.

When someone applies for your credit rating using one of the databases such as Equifax, there is a list at the bottom of all the companies who have requested a credit check on your name previously. It does NOT give the outcome of their decision based on the results the credit check has given them.

The credit check is only for information, you can't see other companies decisions. However, if someone can see there have been a lot of checks by money lenders for example, they might wonder why and be less inclined to offer you a loan.

You can ask for a copy of the details e.g. Equifax keep on you to see what your rating is.

Answer 2

It absoultely does. Here's how your credit score is broken down:

35%- payment history
30%- total debt outstanding
15%- length of time you've had credit
10%- types of credit
10%- inquiries and new credit

Each inquiry deducts around 2-3 points EACH TIME YOU APPLY. Let's say for instance you applied for 3 credit cards and a department store card. That's 10 points off your score right there. And what makes matters worse, those inquiries don't go right away, either. It takes about 2 years for those to fall off your report. If you're really needing a credit card, my suggestion is to get a secured credit card. These are the easiest, but most costly becuase you have to put a deposit upfront to secure the same amount in a line of credit. But this isn't always a bad thing. A couple of benefits are the fact that you can set your own limit and the deposit gains interest. I had one once where I took my tax return and some money I had saved for about 6 months and got a secured card. I deposited $7,500, which was my credit line. I purchased items with it I knew I had the cash on hand for or that I knew that I could pay off in full, on time before the statement closed. I did that for about 9 months to a year. Not only I got my deposit back with interest, now I had an unsecured card with a $7,500 limit as well. I sent some links to some secured credit card companies that might help you out.

Answer 3

Although it doesn't, it does affect the ability for you to get credit. When doing a credit search on a person you can see how many times they have applied for credit - being declined will therefore affect their trust in you.

Answer 4

Yes. Each time you apply for credit an "inquiry" is placed on your credit history. Too many inquiries can affect your score on a fairly big way, sending up red flags to potential creditors. The inquiries stay in your file for about 3 years. When you apply for a car laon or a house loan, multiple inquiries within a short period of time (related only to the car or house purchase) count only as one inquiry.

Answer 5

Any time you apply for credit and you are turned down it does affect your credit slightly. Although it really depends on how many times you apply and are turned down. If you only apply a few times a year you have nothing to worry about, but if you apply several times it will flag your credit and it is lowered because of it.

Answer 6

Yes because you are being refused credit. You probably have a bad score already.

Answer 7

no it does not. but you do have the right when you have been declined for a free credit report. Al so a inquiry dings your credit whether you get credit or not! take care and God bless!

Answer 8

yes it does it goes on your credit file as many times as you apply not just once

Answer 9

You dont really have a score as such, all the reference agencies have is lists of your accounts and how you've maintained them, a lender will see how many applications you've made recently and if you have a whole bunch of them they may ask why.

Answer 10

yes it does, check out your credit rating by asking them why was I declined, and check all the spelling of you name and the address is correct