What You Need to Do
If You Have Been Denied Credit |
Written By Ellise Walsh
Tue 3/29/2005 11:04 AM
There is no doubt that being denied credit can be a traumatic experience.
Credit denials can range from the merely annoying, like not getting that
shiny new credit card, to the truly devastating, like being denied a
mortgage on the home of your dreams. No matter what the reason for your
being denied the credit you need, there are steps you should take to make
sure it does not happen again.
The good news is that many credit denials are the result of errors in the
reports held by the three major credit-reporting agencies. In the United
States, the big three are Experian, TransUnion and Equifax. The information
these three influential companies hold about you can determine whether you
get that mortgage or consumer loan, and if you do get it, what your interest
rate will be. Unfortunately for consumers everywhere, the information
reported by these agencies is not always 100% accurate. As a matter of fact,
a recent survey by a consumer rights organization revealed that up to half
of all credit reports contain at least one inaccuracy.
If you have been denied credit, you are entitled to a free copy of your
credit report. By all means take advantage of this offer to obtain a copy of
your credit report. The denial letter will usually contain instructions on
how you can obtain a copy of the credit report that was used in the decision
to deny you credit.
Once you have received a copy of your credit report, examine it carefully
for errors. If you see anything that does not look right, report it
immediately to the credit-reporting agency. The agency is required by law to
verify any information questioned by the consumer. After you have reported
any errors you find to the credit-reporting agency, be sure to follow up.
Order an additional copy of your credit report in a month or two to make
sure that the credit report has been corrected. If it has not, be sure to
notify the reporting agency immediately.
It is also important to follow up with the company that denied you credit.
Contact the bank or credit card company as soon as possible and let them
know that you found an error on your credit report. Request that they
reconsider your credit application in light of the new report. This is an
important step in cleaning up your credit and making sure you will not be
denied again.
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