[quote name='dinovelvet']It can go on your credit report if you get denied, which may be a red flag at some point down the road.[/QUOTE]
Getting denied credit does not go on your credit report. When you apply for a credit card (or loan, etc) a credit inquiry goes on your file. An inquiry by itself isn't a negative thing. It just shows you are looking for credit. Even if you get a few inquiries at the same time, as long as they make sense, its fine. For example, when you are shopping around for a new credit card or home mortgage or car loan--you aren't going to go to just one place and get one quote.
What hurts your credit is when you have a pattern of repeatedly seeking credit. Like a card application, followed by a car loan app, by another cc app, etc.
Once you take on a credit line (card, loan, etc) then that company will report back to the credit bureaus about the ongoing status of your loan.
I'm not in the industry, but I worked at a financial company that did have a huge bank attached to it. And this is what I learned from chatting with those guys. Your report consists of companies inquiring about your credit and the status of your ongoing loans. Companies do not report back that you were denied credit. That would be a double-ding. You were denied credit because they didn't like your credit report, they aren't going to add another negative mark to your credit report in addition to the ones that got you denied in the first place. If you are being denied a lot, that will result in a pattern of seeking credit (lots of inquiries) and that will be what hurts you. Not the fact that you were denied credit.
If someone in the industry knows otherwise and can correct me, please do.