What is Experian’s No Ding Decline feature and should you use it?

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If you're trying to improve your credit score, you might hesitate to apply for new credit cards out of fear that a denial could slow your progress. While being rejected for a credit card doesn't directly hurt your score, the hard credit check from the application process can cause a slight dip. That's where the Experian® Marketplace's No Ding Decline comes in — it lets you apply for certain credit cards without the risk of a hard inquiry if your application isn't initially approved.

CNBC Select discusses how Experian's No Ding Decline works and other ways to apply for cards with confidence.

Experian's No Ding Decline lets consumers explore credit card options without worrying about hard inquiries, or hard pulls, affecting their credit scores. When you apply for a credit card labeled with No Ding Decline through the Experian Marketplace, there will be no hard inquiry to impact your score if you are not initially accepted.

How does No Ding Decline work?

You can sign up for Experian's marketplace with some standard information to verify your identity, like the last four digits of your social security number and mobile phone number. You can then browse personalized offers based on your credit profile and apply for cards that fit your preference. Not all cards offer the No Ding Decline option, so check for the label before applying. According to Experian, roughly 70% of users find at least one card with the No Ding Decline option.

It's worth noting that if you apply for a card that offers No Ding Decline and are approved, a hard inquiry will still be added to your credit report, even if you don't pass the final verifications or choose not to accept the card. Also, you may still get approved for cards that don't feature the No Ding Decline label, but those will come with the standard hard inquiry risk.

There are other ways to apply for a card without the risk of a hard credit check impacting your score if rejected.

American Express offers a way to check if you'll be approved for a card before applying through its "Apply with confidence" feature. Let's say you're looking to earn bonus cash back at supermarkets and on streaming services, so you consider the Blue Cash Preferred® Card from American Express. You can apply for the card as you normally would and Amex will let you know if you'll be approved using a soft credit inquiry. A hard inquiry is only done if you choose to accept the card.

Other issuers also offer prequalification options that only use soft credit checks, but it's important to note that oftentimes prequalification or preapproval does not guarantee your application is accepted, but is a good indicator of potential success.

If you're interested in Experian's No Ding Decline options, you'll need to be aware that you'll be limiting yourself to the card options Experian offers.

Alternative cards that are easy to get

If you think you'll have difficulty being approved for a credit card there are a handful of options with a less rigorous approval process.

The opensky® Secured Visa® Credit Card is a secured card that requires no credit checks and boasts an 89% approval rate. There are three plan options, with varying minimum deposits and fees. The card comes with opensky Rewards, which links merchant offers directly to your card allowing you to earn up to 10% cashback, though some offers may require activation. Opensky reports to all three major credit bureaus, and after six months you may be eligible for a credit line increase.

The Firstcard® Secured Credit Builder Card is another secured card that doesn't require any credit checks or social security number making it a good option for students or immigrants. Firstcard offers three tiers of subscription plans with the benefits increasing as the plans get more expensive, and the funds you deposit will earn interest dependent on your plan level. The card earns cashback and keeps its additional charges low with no late fees or interest.

Here are a few ways you can boost your credit score and improve your chances of getting approved for a new credit card:

Show a source of income

While this may seem obvious, showing a source of income doesn't necessarily mean a traditional job. If you're in between jobs or don't have a typical paycheck, you often can list alternative sources of cash flow on your application. This could include income from investments, inheritances, Social Security benefits, rental income or child support payments. Also, as long as you're 21 or older, you can list your entire household's income if you have a "reasonable expectation of access" to it.

Pay your bills on time

Your payment history is the largest factor in determining your credit score, accounting for 35% of your score. Paying your bills on time and, ideally, in full, can significantly boost your creditworthiness.

With services like Experian Boost®, you can link certain bills like your cellphone or internet, and you'll receive credit for on-time payments. While this free service isn't guaranteed to raise your score, it does help credit bureaus find some data they might not have otherwise. While this program will only impact your FICO® Score, not your Equifax or TransUnion scores, users who increased their credit scores did so by an average of 13 points*.

Check your credit report periodically

While you don't need to check your credit report daily, reviewing it periodically can help you identify and fix any potential errors. This could be a simple misspelling of an address or last name, but any suspicious activity on your credit report should be addressed quickly as it can have a large impact on your score.

There are a number of tools like CreditWise® that can help you keep track of your credit report. This free tool from Capital One will help monitor your Experian and TransUnion credit reports and offers additional services like dark web scanning and social security alerts.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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* Results will vary, not all payments are boost-eligible or considered by lenders. See website for details.

For rates and fees of the Blue Cash Preferred® Card from American Express, click here.