Credit Card Denial
Simple Steps You Can Take If Your
Online Credit Card Application Has Been Denied or Refused
Help! I've Been Turned Down For
a Credit Card.
You received an envelope in the mail with a great offer for a low
interest credit card. You read all the details, even the boring small
print and decided that this card fit your needs to a tee. You filled
out the required forms and anticipated the day that the card would
arrive and you even got to pick which background you got.
However, what came in the mail was not an acceptance and a brand new
card but a denial. What is your first reaction? Perhaps anger. Perhaps
sadness. Perhaps fear. Yet none of these will help you get a card!
So, what should you do?
1. The first thing to do is read the letter carefully. Two important
pieces of information must be included in the letter you receive when
you're credit application is disapproved: The specific reasons you were
denied credit, or information on how to obtain those reasons, and, if a
credit report was used in making that decision, the name and address of
the credit reporting agency.
Here are
some possible reasons for denial:
Haven't
lived at your current location long enough
Haven't been employed at your
current job long enough
Your income is not sufficient
to meet this particular creditor's minimum income requirement
Information supplied by the
credit bureau
2. If the reason for your denial is unclear to you, then call the
company for clarification. What were the exact reasons? What were the
exact standards that you did not meet? This information is important to
know and understand.
If you apply for credit again and are turned down, then this reflects
poorly on your credit report. The best advice for this situation is to
wait at least 6 months if you have been denied by two different
companies in quick succession.
3. If you've been denied credit because of information supplied by a
credit bureau, federal law requires the creditor to give you the name,
address, and telephone number of the bureau that supplied the
information. You should contact this agency for a copy of your credit
report.
Federal law states that you are entitled to a free copy if you've been
turned down. Once you receive your report, check it for accuracy. Up to
40% of reports have errors. If you find an error, then you need to
report this to the bureau in writing.
Be sure to send along whatever proof you may have. Getting the credit
bureau to investigate an error will not cost you anything and will save
you a lot of time and frustration when it is corrected.
4. If mistakes on your report led to the rejection of your application,
ask the credit bureau to send a corrected copy to the lender. Then you
can ask the lender to reconsider your application. If however, you were
denied because of a poor rating, only better spending habits and time
will help you get the credit you desire.
Wesley Atkins: Author |
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