Denied Credit? 3 Immediate Things You Should Do
"Sorry, your request for credit has been denied...
" The dreaded words we all wish we don't have to encounter when we apply for a loan or credit.
Sometimes, there's not much you can do about it.
Beyond your credit history and score, economic reasons may also be a factor when it comes to the decision process to grant you credit.
As many of us are no doubt now painfully aware, the recent credit crunch has left people with stellar credit baffled as they receive rejection lenders to application for credit cards, student loans, auto loans, and even at times mortgages.
While sometimes there's nothing you can do after receiving a rejection, there are times where you should take immediate action after being denied credit.
Here's three things you should do immediately after being denied credit: 1.
Contact, follow up, reach a representative to see if there's flexibility.
Sometimes, a credit report and score can't tell the whole story.
This is especially the case if you're applying for a credit card.
Many card issuers have uses computerize models and formulas to instantly grant credit.
If you're denied instantly, you should try to call the card company in question and speak with a representative to see if there's anything that can be done.
Though you may not be able to receive the exact credit card (or rewards/benefits) that you were hoping for, you may be able to get a lower-tiered card (e.
g.
, a gold card vs.
a platinum card).
Take note that at times you may be subjected to a higher annual percentage rate for interest.
2.
Request for your free credit report to spot potential errors.
When you're denied credit, federal law dictates that you're entitled to one free credit report.
Sometimes you'll have to request this free credit report via a written letter, often times you'll be able to immediately log on and receive your free credit report straight from the credit reporting agency's website.
If you were expecting an approval without problem, now would be a good time to go over your credit history to see if there's any erroneous information that you may have missed.
If you spot any misinformation, follow up and have the reporting agency remove them.
3.
Depending on what you were applying for, stop or keep going.
Did you know that if you're applying for a home or auto loan, you have a certain duration of grace period where you can go shop for different credit without fear of multiple inquiry dings on your credit history? If you were recently denied auto/home loan from one lender, the credit scoring model has a buffer period that ignores hard inquiries within a 30 day period of applying for an auto or home loan.
This allows consumers to shop around for different rates/lenders without damaging their credit worthiness.
Remember that your credit worthiness takes time and diligence to build and repair.
If you're having issues being granted credit, you should take a hard look at your current report and standing to see if there's any actions you can take to fix the negatives.
With proper on-time payment, diversity of credit profile, keeping credit utilization ratio low, you'll be having a solid history in no time, and rejection would be the last of your worries!
" The dreaded words we all wish we don't have to encounter when we apply for a loan or credit.
Sometimes, there's not much you can do about it.
Beyond your credit history and score, economic reasons may also be a factor when it comes to the decision process to grant you credit.
As many of us are no doubt now painfully aware, the recent credit crunch has left people with stellar credit baffled as they receive rejection lenders to application for credit cards, student loans, auto loans, and even at times mortgages.
While sometimes there's nothing you can do after receiving a rejection, there are times where you should take immediate action after being denied credit.
Here's three things you should do immediately after being denied credit: 1.
Contact, follow up, reach a representative to see if there's flexibility.
Sometimes, a credit report and score can't tell the whole story.
This is especially the case if you're applying for a credit card.
Many card issuers have uses computerize models and formulas to instantly grant credit.
If you're denied instantly, you should try to call the card company in question and speak with a representative to see if there's anything that can be done.
Though you may not be able to receive the exact credit card (or rewards/benefits) that you were hoping for, you may be able to get a lower-tiered card (e.
g.
, a gold card vs.
a platinum card).
Take note that at times you may be subjected to a higher annual percentage rate for interest.
2.
Request for your free credit report to spot potential errors.
When you're denied credit, federal law dictates that you're entitled to one free credit report.
Sometimes you'll have to request this free credit report via a written letter, often times you'll be able to immediately log on and receive your free credit report straight from the credit reporting agency's website.
If you were expecting an approval without problem, now would be a good time to go over your credit history to see if there's any erroneous information that you may have missed.
If you spot any misinformation, follow up and have the reporting agency remove them.
3.
Depending on what you were applying for, stop or keep going.
Did you know that if you're applying for a home or auto loan, you have a certain duration of grace period where you can go shop for different credit without fear of multiple inquiry dings on your credit history? If you were recently denied auto/home loan from one lender, the credit scoring model has a buffer period that ignores hard inquiries within a 30 day period of applying for an auto or home loan.
This allows consumers to shop around for different rates/lenders without damaging their credit worthiness.
Remember that your credit worthiness takes time and diligence to build and repair.
If you're having issues being granted credit, you should take a hard look at your current report and standing to see if there's any actions you can take to fix the negatives.
With proper on-time payment, diversity of credit profile, keeping credit utilization ratio low, you'll be having a solid history in no time, and rejection would be the last of your worries!
