What You Need to Do If You Have Been Denied Credit
by Ellise Walsh

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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