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Credit Rating >> Credit Rejection
Credit record is the most important document
especially when we see that people are having huge debt problems. On an
average each american is having $9000 of credit card debt. A person's
credit report is a reflection of his money management skills. It gives
a complete evaluation of your past and recent credits. Based on this credit
report the creditors decide about your credit worthiness. A creditor's
trust depends on how regular and efficient you had been while repaying
your past credits. Establishing or reestablishing credit isn't easy. Even
if you've cleared your past credit, you may be turned down when you apply
for a loan or a credit card. It is important that you understand the reasons
why credit grantors may deny extending credit.
There can be some probable reasons for which
your credit request can be rejected: - You may not have held your
present job or lived at your present address long enough. Some creditors require
that you've been at your job or address for at least three years.
- Lenders
are often interested to know why you are applying for the loan. Sometimes, they
do not consider your purpose of taking loan as reasonable. Often, lenders may
have restrictions that do not allow them to make the kind of loan you are requesting.
- If you're relying on a cosigner, the lender may feel that
the cosigner cannot take up any new liability.
- A credit grantor
may believe that you already owe too much on your present accounts. In such cases,
they may refuse to offer additional credit as it involves higher risk.
- Your
credit report may contain incorrect information about your credit .Whenever you
are refused credit, you have the right to receive a free copy of your credit report
within 30 days of rejection from the credit reporting agency that the creditor
used. Take advantage of this opportunity to review your credit report and determine
if there are any mistakes.
- Finally, you may be turned down
for credit if your credit report indicates that you have recently applied for
numerous lines of credit. Lenders may question your motives or be concerned that
you are at risk or overextending yourself.
If you've recently been
refused credit, wait a while before applying again. Take some time to review your
credit report and correct the problem that is keeping you from being credit worthy.
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