It\u2019s no fun being denied anything, especially credit. Usually when someone is trying to get a line of credit, it\u2019s for a big reason or major life milestone and having a credit application denied can feel like a real setback. But this rejection isn\u2019t something to take personally. It\u2019s more common than people realize and doesn\u2019t spell doom for your financial future. In fact, credit denials can be a good opportunity to take proactive steps to improve your credit health long-term.<\/p>\n\n\n\n
How will I know I\u2019ve been denied credit? If a lender denies your credit application, they will send you a letter called an \u201cadverse action notice.\u201d Don\u2019t worry — it sounds more menacing than it really is. This letter will explain why the lender denied your application and give you information about the credit reporting agency where they got your information. With the notice, you are entitled to get a free credit report from that agency within 60 days. While the credit reporting agency provides your information, the lender ultimately makes the decision on whether to grant credit or not. If you need more information specifically about your denial, it\u2019s usually best to contact the lender directly.<\/p>\n\n\n\n
Why was I denied credit? There are many reasons a credit application could be denied and the reasons vary by lender, the types of credit requested and your personal credit history. The adverse action letter will list the reason or reasons why you were denied. Common causes include having a limited credit history, too many recent inquiries and a high balance on current credit accounts. But every situation is different. If you are still unsure about the reason for the denial after reading the adverse action letter, you can call the lender to find out more.<\/p>\n\n\n\n
What should I do if I am denied credit? If you are denied credit, you don\u2019t technically have to do anything. But that\u2019s probably not your best option. It\u2019s natural to feel bummed about being rejected, but you can use the denial as a motivator to make strides to improve your credit health. Your credit report acts like your financial resume, showing your history of what you\u2019ve done with credit. Read it carefully to see if there are any areas where you could do better. Are your balances too high? Create a financial plan that includes paying them off as quickly as possible. Did you miss a payment recently? Set up automatic payment options on your monthly bills so you\u2019re always on top of it. Don\u2019t forget to check your report for inaccuracies, as they can occasionally play a role in a denial.<\/p>\n\n\n\n
If you\u2019ve been denied credit, learn more and take that first, important step by getting your TransUnion credit report at transunion.com\/deniedcredit.<\/p>\n\n\n\n
No financial plan is completed without setbacks, but don\u2019t allow those setbacks to keep you from taking action. Whatever the cause of a credit application denial, there\u2019s a solution. With perseverance and patience, you can achieve your financial goals. (StatePoint) <\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s no fun being denied anything, especially credit. Usually when someone is trying to get a line of credit, it\u2019s for a big reason or major life milestone and having a credit application denied can feel like a real setback. But this rejection isn\u2019t something to take personally. It\u2019s more common than people realize and […]<\/p>\n","protected":false},"author":2,"featured_media":615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"apple_news_api_created_at":"2019-10-15T12:39:22Z","apple_news_api_id":"96b50e19-57c4-48fd-9b46-c0e734539664","apple_news_api_modified_at":"2019-10-15T12:53:37Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAg==","apple_news_api_share_url":"https:\/\/apple.news\/AlrUOGVfESP2bRsDnNFOWZA","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"GENERAL","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1],"tags":[185,184,134,12],"ppma_author":[356],"class_list":["post-613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","category-news","tag-banking","tag-credit","tag-finance","tag-news"],"apple_news_notices":[],"yoast_head":"\n