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Getting denied when you apply for a credit card has an extra sting if your credit score drops, too.
But it can happen. One component of your credit score is how recently you have applied for credit. You can potentially lose a few points simply for applying.
The good news? Time can heal the damage. If you , your score should rebound.
Still, before you apply, it's smart to check your and score, and to apply only for credit that you feel reasonably sure you’ll qualify for.
The reason your score drops when you apply for a card is because lenders generally do a “” to check your credit before deciding to approve or reject you. Requests for additional credit, especially , suggest more risk for the lender or card issuer. That's why the more hard inquiries you have, the more of an effect it'll have on your score.
So the “no” does not hurt your score, but .
Approval, though, can make the potential drop a lot more palatable — and it offers ways to balance it out. If you get approved for a new credit card, for example, it bumps up your total credit limit. The is a major factor in your credit score. When your total credit limit increases, that makes your outstanding balances a smaller share of the now larger overall credit limit, so that extra breathing room can help your credit.
If you get , you might be able to appeal the decision with the issuer. It’s also smart to understand why the application was rejected so that around.