What Impact Do Declined Credit Card Applications Have on Your Credit Report?


Quick Answer

Declined credit card applications have minimal impact on a consumer's credit report, and that impact lessens with the passage of time, explains Experian. A rejection has no direct effect on credit scores.

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Full Answer

A credit report never shows if a credit application is accepted or rejected, according to Experian. The application does show up on the report and might negatively affect a consumer's credit score due to the possibility of new debt. However, the risk of this debt appearing goes down over time, and if a new account never does appear, there is no way to tell why. It could be due to a rejection, or perhaps the consumer simply decided not to pursue the account.

The impact becomes greater if a person frequently applies for new credit cards, even if the applications are not declined, explains The Nest. This is because credit card companies run inquiries with each application to check on credit history, and inquiries can drops a credit score by a few points. A lot of inquiries equals a greater score drop. Inquiries stay on a credit report for one year, and credit requests appear for two years. To minimize the chances of credit card application denials, consumers should make all payments on time, decrease their debt, and wait as long as possible before applying again.

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