The Skinny on Applying & Credit Impact

[Anonymous]

I know that pre-qualifying for a credit card is a soft inquiry. That a hard inquiry can be made to 1 or even 3 credit scores when applying for a credit card. That this applying has negative effect. But, that if approved the revolving credit goes up, which puts your score higher, yet a lower grade on time on average account. So, with this knowledge in hand,  My question is: Will being DENIED take more points off the credit score, aside from the hard inquiry?

[elim]

No, Just the few point loss from the Inq.

[Anonymous]

Actually, being approved usually yields a greater score drop than a denial.  With an approval you have 3 factors that come into play verses just one with a denial (the inquiry).  With an approval not only do you have the inquiry, but you have a change to AAoA that may or may not cross a threshold (resulting in a score drop) and you also have a "new account" that gets reported that can temporarily drop your score. 

The inquiry IMO is the smallest factor to worry about when apping.

[myjourney]

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@Anonymous wrote:

I know that pre-qualifying for a credit card is a soft inquiry. That a hard inquiry can be made to 1 or even 3 credit scores when applying for a credit card. That this applying has negative effect. But, that if approved the revolving credit goes up, which puts your score higher, yet a lower grade on time on average account. So, with this knowledge in hand,  My question is: Will being DENIED take more points off the credit score, aside from the hard inquiry?

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This is a good question and also very tricky ROFLOL

The denial itself is not scored thus has no effect on scoring 

Only HP's and new accounts are scored along with the obvious (baddies) etc etc 

[Anonymous]

The score hit is not what hurts, the inq count against you I see as worse. What good is a 700+ score to sensitive lenders? It's not. Many can recover a terrible score in under two years; the inquiries from a string of denials you are stuck with.

[Gmood1]

Inqs count against scoring only for 1 year. I've never been denied credit for inqs. It's not a real world factor IMO to obtain credit IME. "Too many new accounts" is what can hurt you.

I added 5 new accounts between Nov and Dec. Also had 6 new inqs. My scores are higher now than before any of those new accounts or inqs.

[Anonymous]

Thank you for reading my question and giving me a straight answer

[Anonymous]

True gmood1, when I was applying for the Cards I was getting most of them. I guess if you're rock bottom and have 8 INQ w/8 denials your scores aren't moving down much. My friendly warning still stands! Once you have all those bad inquiries and find yourself in a better position, like when collections or judgments are removed your score climbs…inq still there.

Barclaycard will see you were asking every single girl in your class out to the bar

[AverageJoesCredit]

Im with fordguy in that if you have a new profile or thin one,or rebuilding, those inqs do hurt because then you get the ubiquitous seeking too much credit or if you use alot of hps, even if approved, those new accounts which you had to use a inq for, show too many inquiries and can affect you with certain lenders. I know alot more goes into getting approved other than inqs but its a real easy one for them to throw back at you. For those with thick profiles or higher incomes and the like, probably the inqs dont hurt so much if at all. But for someone such as myself who let too many accumate in my rebuild, lesson learned though , its just something i dont want to present to my next application. Just my average thought for the day.

[Anonymous]

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@Anonymous wrote:
The score hit is not what hurts, the inq count against you I see as worse. What good is a 700+ score to sensitive lenders? It's not. Many can recover a terrible score in under two years; the inquiries from a string of denials you are stuck with.

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The longest anyone is "stuck" with inquiries is 2 years, so I'm not really understanding your point here relative to score recovery in 2 years?