Are CC rejections separately reported to CIBIL?

[vortexape]

Hello fellow CC enthusiasts,

I hope you all are doing well!

Recently I'd applied for a CC with Axis and they rejected my application. Shortly after my CIBIL dropped by 11 points, while I can see the hard inquiry they pulled on my CIBIL (I had applied for a card 3 months ago with Axis itself that got approved) Is that the sole cause for the decline? or the banks also report the final status to CIBIL that further alters the score?

On a side note, I know it's quite difficult to get the lender inquiries expunged from the credit history, has anyone here had any luck with such requests?

Thanks in advance.

 

[Deleted member 4382]

Any rejections will impact score

 

[Cierdo]

No. There is no way for Cibil to know that you were rejected or whether you declined the card yourself.
You see, there are multiple reasons for having a Credit Enquiry and not getting a card from the bank, you may not have completed the application, you may have decided to not go with the card as well.
If you have a credit enquiry in a month, your score may drop hy 2-3 points and will get back up withing the next 2-3 months.
You drop in score may be attributed to the addition of a new card in your cibil. (The axis one that got approved)

 

[SunnyM]

No. There is no way for Cibil to know that you were rejected or whether you declined the card yourself.
You see, there are multiple reasons for having a Credit Enquiry and not getting a card from the bank, you may not have completed the application, you may have decided to not go with the card as well.
If you have a credit enquiry in a month, your score may drop hy 2-3 points and will get back up withing the next 2-3 months.
You drop in score may be attributed to the addition of a new card in your cibil. (The axis one that got approved)

A rejection may not hinder the cibil score but if the application is accepted and when the credit card account is added to your cibil then your cibil score increases as your credit limit increases so indirectly it does effect the cibil score.

 

[BMR]

So much confusion here. Can someone who knows about this for sure , post his feedback to help fellow members ?

 

[Cierdo]

A rejection may not hinder the cibil score but if the application is accepted and when the credit card account is added to your cibil then your cibil score increases as your credit limit increases so indirectly it does effect the cibil score.

This is not entirely correct, I'd call this misinformed.
Addition of cards does not necessarily increase your credit score. It will increase only if your credit utilisation was very high, which got decreased post addition of a new card.
As your number of credit products increase, so do your chances of defaults.
Hence, the credit score does take a small hit, contrary to what people may believe.
Only when your positive of addition outweigh the negatives, do we see a rise in credit score.

 

[SunnyM]

This is not entirely correct, I'd call this misinformed.
Addition of cards does not necessarily increase your credit score. It will increase only if your credit utilisation was very high, which got decreased post addition of a new card.
As your number of credit products increase, so do your chances of defaults.
Hence, the credit score does take a small hit, contrary to what people may believe.
Only when your positive of addition outweigh the negatives, do we see a rise in credit score.

Yes thanks for correcting that. I was assuming that the credit utilization is always high for that to the true.