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Will a credit card rejection lower my credit rating?

New Visitor

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...

Message 1 of 4
3 REPLIES
Senior Contributor

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.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 2 of 4
Valued Contributor

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?

Message 3 of 4
Established Contributor

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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