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Denied CreditIf you are denied credit, federal law requires that the creditor give you a notice that tells you the specific reasons your application was rejected or the fact that you have the right to learn the reasons if you ask within 60 days. Indefinite and vague reasons for denial are illegal, so ask the creditor to be specific. Acceptable reasons include: "Your income was low" or "You haven't been employed long enough." Unacceptable reasons include: "You didn't meet our minimum standards" or "You didn't receive enough points on our credit scoring system."

If a creditor says you were denied because you are too near your limits on your credit cards or you have too many charge card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time.

Sometimes you can be denied because of information from a credit report. If so, the Fair Credit Reporting Act requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the information. You should contact that agency to find out what your report said. This information is free if you request it within 60 days of being turned down. The reporting agency can tell you what's in your report, but only the creditor can tell you why your application was denied.

If you've been denied, or didn't get the rate or terms you want, ask the creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in that system, and the best ways to improve your application. If you are approved, ask the creditor whether you are getting the best rate and terms available and, if not, why. If you are not offered the best rate available because of inaccuracies in your report, be sure to dispute the inaccurate information in your credit report.

If you have been denied credit entirely (often because of the Catch-22 situation where lenders don't want to offer credit to anyone without a credit history--but how do you get a credit history without credit?), you can apply for secured credit cards, which essentially allows you to deposit a sum of money (say, $500) and then "charge" purchases, up to $500. By using this card responsibly (such as by not going over the limit--even better, creditors like it if you use no more than 30% of your available credit, as it shows you aren't likely to incur debts you can't pay--and by paying your bill on time--never late, even by a minute), you build a credit history. This record of good credit usage will help you get other kinds of credit--a car loan, a mortgage, etc.

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โˆ™ 2014-01-18 17:17:23
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Q: What if you are denied credit?
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Related questions

If denied credit before eighteen does it affect your credit after you turn of age?

No. You were denied credit because 18-year olds cannot legally enter into a contract.


Are denied credit card applications shown in credit reports?

YES


When are the consumers entitled to a free credit report from a credit bureau?

When you have been denied credit or annually.


Will your last name show misspelled in your credit reports if you misspelled your last name in a credit card application but the application was denied?

If your credit card application was denied, you do not have a credit card. You are not in the credit company's system. Therefore, you will not receive a report.


Does getting denied for a loan affect your credit?

You were probably denied your loan application BECAUSE of your credit rating. It should be possible to find out what your credit report says about you - see the link below.


Can you be denied unemployment benefits if you have bad credit?

In the UK, no.


3 reasons for denied credit Illegally?

because ..


Does being denied a car loan lower your credit score?

yes, when you apply for an auto loan and get denied, it will hurt your credit. first, just applying for credit is a hard hit by 2 to 5 point lost.


Where to See credit history after denied credit?

Credits history can actually be taken from credit reports which is sold by several CRA's.


If your cosigner's credit is good but yours is not so good will you be denied an apartment?

The company extending the credit is the judge of that. they have guidelines to determine who that extend credit to.


Does your credit score go down if you are denied a loan?

yes your credit score goes down everytime you apply


If you get denied for a loan will that show up on your credit report?

Yes and too many bring down your credit score.

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