Frequently Asked Questions: CREDIT DENIAL
Our readers want to know...
"Why was I denied credit?"
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A few of those reasons might be:
- Not enough income to handle the debt
- Self-employed and not enough documentation to verify income
- You have neither a savings account or checking account, or it's been less than 6 months that you've opened these with your bank
- Spotty employment record, you move from job to job and have long periods of unemployment between each job
- Your loan application is not completely filled out, important information cannot be verified
- Current credit obligations are too high in the eyes of the lender, credit balances are "maxed out" on most of your credit cards
- You have a history of being more than 30 days late making mortgage and credit card payments
- There are derogatory marks on your credit report such as a tax lien, accounts turned over to collection agencies, or a bankruptcy
The law requires that you be informed why you've been denied credit. A creditor must notify you in writing, staying the reason why you have been denied. It must reveal the source of the credit information that it based its decision on. The credit denial letter you receive will give the contact information of the credit bureau which supplied the data, and you will then have from 30 to 60 days to ask for a free copy of your credit report from that bureau.
It's your right and your responsibility to get that copy of your credit history from that agency, and that report might contain incorrect facts or outdated information. By getting your report you can review it yourself and dispute any errors you find there.
New Question: "How do I dispute errors in my credit report?"
New Question: "How long does a negative entry stay on my credit report?"
New Question: "What types of items are not included in my credit reports?"
New Question: "How do you qualify for credit?"
We've established hundreds of free tips on how to restore your credit at http://www.findhow2.com. Return to FindHow2.com Homepage