If you are shopping for a credit card or another kind of a credit account you might wonder as to the effect this might have on your credit score. A credit report only shows the enquiry by lender every time that you apply for a credit account. Eight does not show whether the application was approved or denied. However if subsequently a new credit account is opened by the same lender will make the enquiry then it may be presumed that your applications approved. However, if no subsequent account has been opened by the lender then it does not automatically reflects that your application was the night because several times consumer might suggest changes mind about opening a new credit account. Because your credit report does not reflect the enquiry as approved or denied, the denial for an application has no effect on your credit score.
However, making too many applications to credit and subsequently having too many enquiries on your credit report in a short period of time may affect your credit score negatively. Applying for too much credit into many different races into short period of time tells the credit scoring model that you are looking to extend your credit limit which may possibly be related to facing financial difficulties and debt. The potential negative impact on your credit score is not because of an application getting denied but because it appears that you are trying to accumulate a lot of debt which would in turn make you a high risk for a lender.
If you apply for a credit card once or twice and have been denied it would be a good idea to go in for a secure credit card. Although if this would serve to and hands to credit history not wouldst depend solely on the fact whether your lender reports transaction is on a secure credit card to the credit bureaus or not. In some cases the lenders might not report payment history for secure credit card is to the credit bureaus. However this does not mean that getting a secure credit card will be without purpose. Most of the lenders would be more open to extending you a conventional unsecured credit card once you have displayed responsible spending behaviour on your secure credit card. Using the secure account wisely and making the payments on time too simple steps to follow to achieve this. You will need to ask you learned about the exact policies they practise about secured credit cards.
If you find that your application for credit is being repeatedly denied due to your credit history you also have the option of getting some on with stable and secure financial credentials to cosign with you on the loan application.