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New Visitor
Posts: 1
Registered: ‎05-19-2009
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Will a credit card rejection lower my credit rating?

Thanks for your help...

 

I have been offered a very low apr (3.9%) on transferred funds credit card from the bank that has my car loan. I have a high credit rating right now (700+). My concern is that my employment status has changed since I received the car loan in October (I was laid off, and while I am making $ as an independent consultant, it is only about half of what I was making). My concern is that my credit rating will be severely reduced if I am rejected for the card under the new circumstances... 

 

Thanks again...

Senior Contributor
Posts: 3,636
Registered: ‎01-10-2008
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Re: Will a credit card rejection lower my credit rating?


dadbran wrote:

Thanks for your help...

 

I have been offered a very low apr (3.9%) on transferred funds credit card from the bank that has my car loan. I have a high credit rating right now (700+). My concern is that my employment status has changed since I received the car loan in October (I was laid off, and while I am making $ as an independent consultant, it is only about half of what I was making). My concern is that my credit rating will be severely reduced if I am rejected for the card under the new circumstances... 

 

Thanks again...


generally speaking your credit score will not be severely reduced as the result of a denied credit application.  the impact of a denied credit application will be in the form of a HP or "hard inquiry" which is typically placed on a CR upon applying for a cc. 

 

the impact can be nonexistent to moderate about 0-25 points depending on other information on your reports.  in many cases the impact is more like 0-10 pts.  there is a relatively quick recovery time from a HP after the first few months you'll begin to recover the points and after 1 year the HP will have no impact at all on your score.  the hard inquiry will be removed from the report altogether after 24 mos in most cases.

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Valued Contributor
Posts: 1,671
Registered: ‎05-24-2007
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Re: Will a credit card rejection lower my credit rating?

Don't be in a rush to tell anyone about the job change.

 

I think you will find that you now have many more deductable expenses and even though your gross is half it might not be as big a change to your after tax income. Isn't that car now a business expense, at least partially?

Established Contributor
Posts: 645
Registered: ‎10-24-2007
0

Re: Will a credit card rejection lower my credit rating?

Back in Oct 08 I applied for Victoria Secret card and was denied because they were "unable to verify my address".  I had not applied for any new credit in over a year at that point. I didn't notice any drop in scores at all.Of course I may have lost a couple of points that I didn't notice in the normal fluctuation of my scores.

 

This inquiry and denial didn't seem to hurt at all when I apped and was approved for Citbank,US Bank,and Discover cards 5 months later.

 

Good luck

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