I have been told that trying to make a payment with a credit card that declines due to no funds, negatively impact credit score. Is this true?

Edit: This was for a payment online.

Note that I don't mind getting answers for other countries, as I doubt there will an answer for South Africa

  • 1
    Can you edit and put the country tag. Also elaborate where you are trying to swipe the card, online? – Dheer Nov 13 '15 at 13:22
  • @Dheer I would have assumed that country would not make a difference. – Nightwolf Nov 13 '15 at 13:27
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    Country makes a huge difference, because credit score is more-or-less national: Canada and the US and the UK each have different companies/bodies that manage them, with different laws, rules, etc. I don't know anything about RSA, but I assume it has the same. – Joe Nov 13 '15 at 15:27
  • @Joe Thanks, didn't know that. Of the countries you know about, would this be true or false? – Nightwolf Nov 16 '15 at 8:44
  • I don't think that would be appropriate to answer on this question. The fact that it's true, or false, in one country has zero bearing on other countries. – Joe Nov 16 '15 at 15:23

If you are talking about Canada, no. Trying to buy something does not constitute a credit check and therefore it doesn't affect you Canadian credit score.


In the United States, this event will have no impact on your credit score. Credit card companies only provide credit bureaus with basic account information: the type of account, the status of the account, the limit, and the current balance. Individual transactions aren't reported.


No, typically a decline will not negatively impact your score however the underlying reason why it declined, may.

Depending on the country, and how your credit score is calculated, it may include a large weighting on Capacity. Essentially how much of your available credit is being used. In some places, capacity can account for more than 25% of your score. Being over 70% of your overall credit capacity for any period of time, can be a bankruptcy indicator, thereby reducing your score.

As such, if you were declined due to being "Maxed Out" and that was the only revolving credit product you had... The decline doesn't hurt your score directly; the fact that you might be at 100% of your overall capacity could definitely hurt your score.

  • Thanks for answer, in my case this credit card account does not allow negative balance, so I am safe in regards to that. – Nightwolf Dec 1 '15 at 7:23

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