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auxy

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Can a recent rejection affect credit card approval odds? (auxy)
Yesterday I mistakenly applied for a Credit One CC thinking the pre-approved letter they sent me in the mail meant I was going to receive a "$1,500 credit limit" (ended up being $400).

I've done a little bit of research and it appears I can cancel this card with no major dings to my credit score. HOWEVER yesterday after reviewing some card offers on my profile, I had applied and was rejected for an American Express Everyday card which Credit Karma said I had a "fair" chance of getting. The hard inquiry has already showed up as a ding on my credit karma scores.

I now want to apply for a Capital One no annual fee card which yesterday had a "good" chance for approval rating and today has a "fair" rating.

My question after this long convoluted text is; Should I cut my losses and stick with the Credit One $100 annual fee card or do I still have a chance of getting the Capital One card and not having an annual fee? I'd much rather not have to pay an annual fee and I have not heard good things about Credit One. But two hard inquiries and two rejections seems like it would hurt my young and fragile credit

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You are hurting your credit right now, and the more you apply for other cards the worse it will get, and thereby make the chance of getting a new card even harder.

In your shoes I would take what you have for the next year, use them VERY lightly, and make sure to pay off every month.  You should not need thousands of dollars of credit unless you can pay it all on the next statement.  In another year, maybe 6 months, try for a card with no fee.  By then the current inquiries will not have as much of an effect, you have shown some on time payments and low credit usage thereby your score will be higher and more likely to get a better card.  Then drop the fee CC.  This will again result in a reduction of your score, new inquiry, loss of avalable credit, average age of credit drops. This is offset by no longer paying 100$ a year, and again the score will go up after a year or so, and be higher than it was before.

Remember this is a long run game, looking at years, with doing everything you can to avoid paying fees and interest along with improving your score. You sound young and just having the one card is where you start.

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