New Delhi, April 15 -- Applying for a loan is a significant financial choice, and it is crucial to be aware of how it will impact your credit score. Borrowers are often concerned about whether a loan denial will damage their credit worthiness, and to protect and improve your financial well-being, this article examines the links between applying for a loan, being denied, and how it all relates to your credit score. ​

When you apply for credit, lenders review your credit history to determine eligibility. This reference could cause your credit score to go down slightly; there is a hard inquiry that gets put on your credit report. It is important to note that the reference is only raised by applying, regardless of the outcome of the ap...