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I have got my credit card this month. So, the next month would be my first payment of my bills [Will pay it in full]

However, I travel a lot, and I get offered credit cards in airports [via the kiosks in the terminals]. I filled one such application for an Amex Platinum card. But, got my application rejected due to low/no credit history.

So, would these applications and rejections affect my credit score? If yes, then I would refrain from filing applications for any good cards I get offered, till I build a decent credit history.

PS : Indian Citizen living in India

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  • Yes, rejections come after hard checks, and the hard check will affect your rating negatively, if only a bit. It's not the rejection, it's the application - successful or not.
    – Aganju
    May 21, 2017 at 11:03

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would these applications and rejections affect my credit score?

Yes applications affect your credit score slightly. Too many applications give the perception to lenders that you are desperate for credit and make it appear that you are experiencing hard times.

Refrain from randomly applying for credit cards. Stick to one initially, and after few years apply for another.

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  • I know the above is a fact for the US, but does this also apply to Indian citizens living in India? I'm asking because I don't know about the rules in other countries surrounding credit cards.
    – Michael
    May 22, 2017 at 12:01
  • @MichaelC. India also has started credit rating and credit score by establishing a Credit Information Bureau. From 2007 or around 2010; most Banks / Institutions provide data and use score before credit is granted. All leading US/World companies [Transunion, Equifax, Experian] are in India as well providing similar functionality to India region. The scoring mechanism is similar. I am yet to see any differences between US / India.
    – Dheer
    May 22, 2017 at 12:10
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Being denied a credit card doesn’t hurt your credit score. But the hard inquiry from submitting an application can cause your score to decrease.

However, the reason your score decreases after getting denied has nothing to do with the lender’s decision to reject your application (and the same goes for credit approvals).

Instead, the lender’s inquiry into your credit history is what may have hurt your credit score.

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If you're denied, you'll still have that hard inquiry, but there isn't really an indication on your credit report that you applied for new credit and were denied. Since credit scores are only based on what's on your credit reports, and there's no direct indication you were denied on your credit reports, being denied can't factor into your credit scores.

Anytime you apply for a credit card, you will get a hard inquiry on your credit report. It's a normal part of the process. That hard inquiry stays on there for two years, and factors into most major credit scoring models for one year.

This should help.

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