I have requested a credit line increase from my credit card company three times, and have been declined each time. Does this affect my credit history?
Your credit report will include a record that your report has been requested, called an inquiry, but it does not show whether or not an application has been approved or declined.
Inquiries resulting from your application for credit are shared with lenders and can affect credit scores, although the impact is minimal. Inquiries alone will never be the reason an application is declined. There will always be other, more important factors in the decision.
An inquiry indicates lending risk because it represents potential new debt that doesn't yet show in your report as an account. If a new account is opened, the account entry will become the important factor. If not, the inquiry no longer represents significant risk. Just because there is no new account reported doesn't mean the application was declined. You might simply have changed your mind.
Having too many inquiries appear on your report within a short period of time can hurt your credit scores, though, because lenders may view this as a sign that you are experiencing financial distress.
Federal law requires that the creditor send you a notice that your application is declined. That notice must include a credit score used by the lender, if a score was used, along with a list of the most important items from your credit report that affected the score.
Pay close attention to these reasons. They can help you determine what changes you can make to strengthen your credit history so that you will qualify in the future.
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The "Ask Experian" team