Suppose you're applying to companies A and B, and company A knows you're applying to company B and vice versa. If in the interview with company A they ask what your status is with company B, do you tell them you got dinged? Or would you say that they're still looking over the application and are waiting to hear back? I feel like it would look bad to explicitly reveal that you got dinged.. What are people's thoughts?
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Just say still in the process. There is upside to saying you got dinged. They won't find out or look into it anyway.
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