You may be denied credit for a variety of reasons. Having a history of late or missed payments is one possible cause, but credit may also be withheld simply because you haven't accumulated enough credit history, due to paying cash for most or all purchases. According to the Equal Opportunity Credit Act, a lender must either tell you specific reasons why you were denied credit, or notify you that you're entitled to receive such an explanation within 60 days if you request it. The lender must state a particular reason, such as you haven't worked long enough, rather than making vague statements. It's important to find out why you were denied, so you can improve your credit rating and re-apply in the future. Under most systems, you can eventually raise your score by paying off balances, paying on time, and not incurring any new debt. If you were turned down because of information in your credit report, the lender must also provide you with the name, address, and number of the credit reporting agency involved. You're entitled to a free copy of your report if you request one within 60 days of the denial. Check the report for inaccuracies. Mistakes can be disputed and if the information is found to be wrong or unverifiable, the agency must correct it.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
