Credit Denied by the Creditor?

After applying for credit there can be a number of reasons as to why you are rejected. Sometimes it can be due to not being on your job long enough lack of sufficient credit references, history of delinquent pay history, excessive amount of debt, irregular income, lack of security, judgments, liens, or collection accounts. The reasons can basically go on and on. However whenever you are denied for credit no matter what the reason may be creditors must take certain steps to make sure you receive certain information about your credit denial. During these uncertain economic times there are a lot of things that can affect you and cause your situation to be less stable than in times past.

People are losing their jobs at an alarming rate and this too can cause you to be denied for credit.

Once you apply for credit and your request is denied there are certain things creditors must do. They must give you a certain amount of information.

Written notice

Creditors have to disclose why you were denied credit in writing and it must be done no longer than 30 days after you were denied.

Specific reason

A creditor must also inform you in writing as to the specific reasons you were rejected. Another option for creditors is to let you know that you can find out the reasons for rejection if you send a request in writing to do so.

Name of credit bureau

Sometimes you can be denied credit as a result of information that appears on record with a credit reporting agency. If so the creditor must provide you with the name and address of the agency that issued the credit report with the information.

Additional source

The creditor must also tell you if their decision was because of information received from another source. If that is the case then you have the right to find out about the source information but only if you do so in writing.

After you receive the information from the creditor than denied you credit, make sure you review it for accuracy. If you were denied credit because of something on your credit report and you have no knowledge of that item then it would be in your best interest to dispute that item with the credit bureau and then reapply with the creditor than denied you credit. Make sure the information has been resolved before you apply again. The inaccurate information should be removed from your credit file before reapplying.