TPG reader credit card question: How bad is it to get denied for a credit card? - The Points Guy (2024)

FAQs

TPG reader credit card question: How bad is it to get denied for a credit card? - The Points Guy? ›

As for rejections, there are not any uniquely negative effects if you're not approved for a new credit card. As a single data point, in over three years of collecting points and miles, I've been rejected for 12 different credit cards, and still have a credit score of about 780.

No, a credit card denial does not affect your credit. However, you might see a slight drop in your credit score due to the hard credit inquiry associated with your credit card application.

A hard inquiry from a card application can cause a small, temporary drop in credit scores. A denial or approval won't hurt your credit scores, because decisions aren't reflected in credit reports. When making lending decisions, card issuers use credit reports and credit scores to determine creditworthiness.

A good credit score will increase your odds of being approved for a credit card as lenders like to see that you can manage an additional line of credit and make monthly payments on what you charge. You should always pay your credit card bills on time each month and try to pay them in full if you can.

Having a credit card declined can be embarrassing and inconvenient, but it won't affect your credit score. However, some issues that could cause a credit card to be declined, like late payments and high balances, do affect your credit. You can reduce the chances that you'll encounter this by: Paying balances on time.

As a general rule of thumb, consider waiting around three to six months before reapplying. In the meantime, try to improve your creditworthiness, which might increase your chances of getting approved when you reapply.

Payment history shows how you've paid your accounts over the length of your credit. This evidence of repayment is the primary reason why payment history makes up 35% of your score and is a major factor in its calculation.

A rejection won't worsen your credit score

Any time you apply for a loan or credit card, a hard inquiry is done on your credit report. And that will usually result in a modest drop in your score -- somewhere in the ballpark of five points or so. A hit that small generally won't have much of an impact.

Your credit score will normally go down by fewer than five points when you apply for a credit card. FICO reports that for most people, one credit inquiry takes off fewer than five points under its credit scoring system. The impact can vary based on your own unique credit history.

How do hard inquiries impact your credit score? A hard credit inquiry could lower your credit score by as much as 10 points, though in many cases, the damage probably won't be that significant. As FICO explains, “For most people, one additional credit inquiry will take less than five points off their FICO Scores.”

Which bank approves a credit card easily? ›

The Discover it^® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited / poor credit. It offers great rewards and charges a $0 annual fee.

Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

Technically there is no minimum income, although credit card companies are legally required to ensure the applicant's income will be sufficient to support the card's monthly payments. They will also look at other factors like your credit score. Can you lie about your income on a credit card application?

Being denied for a credit card doesn't hurt your credit score. But the hard inquiry from submitting an application can cause your score to decrease.

Getting denied credit itself doesn't affect your credit score, but the hard inquiry from applying for credit could impact it slightly.

Why might my debit card be denied even if I have money in the account? It indicates an expandable section or menu, or sometimes previous / next navigation options. Your debit card may be denied due to overdrafting, reaching daily purchase limits, or your bank suspecting fraud.

If your credit score lands around 500 or lower, your chances of getting the credit card of your choice is significantly reduced. You may want to consider improving your score so you can have better chances of getting the card of your choice.

It's completely acceptable to avoid getting a credit card. Consumers can pay entirely with cash, check or debit card and still build a positive credit history through other types of loans.

Here are some common questions about credit limit increases and credit scores: Does requesting a credit limit increase hurt if it's denied? If a credit limit increase involves a hard inquiry, that could cause your scores to dip. But the denial itself shouldn't be reflected in your credit reports.

How much does your credit score drop when you open a new credit card? Opening a new credit card should decrease your credit scores by just a few points—usually around five to 10 points.