What Happens if I am Denied Credit?

Some rights reserved by äquinoktium You finally decide to actually take up an offer from the salesperson to save 25% today when opening a credit card account. After checking your credit, you are denied. Big bummer!

By law, if you are denied credit, you are allowed to receive a free credit report so you can see what is going on to get you denied. This is guaranteed by the Fair Credit Reporting Act. However, you will only get a free credit report from the agency that the lender used to determine your credit worthiness. The lender should provide this information to you when asked or in a denial letter. If possible, you should also try to find out from the lender the exact problems they saw. Then you can compare it with your credit report. Some agencies report different information, so it is also wise to get a report from a second agency while you are at it. You can get a free credit report from each agency once a year. You can find out how at www.annualcreditreport.com.

Once you find out more from the report and the lender, go over your report and make notes of anything inaccurate or that you think is not yours. Each agency has information on its site about how to dispute accounts and information. Then, do some research about how to repair any accurate information on your report that is hurting your credit. We have written several posts about this. Here is a sampling: Credit Bureau Disputes and Things to Consider When Trying to Improve Your Credit Rating. It will take time, but it is possible to clear up your credit.

Attorney Christopher D. Smith is a Lakewood Ranch, Florida attorney with SmithLaw Attorneys. He concentrates in bankruptcy, civil litigation, probate, and elder exploitation cases in the Sarasota and Bradenton area. Call 941 907-4774 to learn more and to ask about our free consultations.

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