Can 404 pages affect rankings?

Can 404 pages affect rankings?

There are different types of 404s i.e. external, outgoing and internal.

External 404 occurs when someone else is linking to the broken page of your website. This type does not affects rankings.

Ongoing 404 occurs when link from your website to another website is broken and it returns a 404. This too does not affects rankings.

Internal 404 occurs when website itself is linking to different page which is ‘not found’ on your website. This type affects rankings.
 
The 404 HTTP responce code demonstrates that a site's server couldn't discover the page (URL) that was asked for by the client, which illuminates the two programs and web search tools that the page doesn't exist. Therefore, the substance of the page (assuming any) won't be slithered or recorded via web search tools.
 
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