1. If you are denied credit, the Equal Credit Opportunity Act requires the creditor to give you a notice specifying the reasons your application was rejected. You are also eligible to REQUEST for this information within a 60-day period.
Indefinite and vague reasons for denial are illegal, so ask the creditor to be specific.
Acceptable reasons include:
• “Your income was low”
• “You haven’t been employed long enough.”
Unacceptable reasons include:
• “You didn’t meet our minimum standards”
• “You didn’t receive enough points on our credit scoring system.”
2. If you are denied credit because you've almost breached your credit limits or you have too many credit card accounts, pay your balances or close some accounts. After that, re-apply.
3. If are denied credit, ask the creditor WHAT credit scoring system was used and how to improve your application. If you are approved but did NOT get the rate/ terms you want, ask the credit to explain. *
*Note that if any unsatisfactory rates/ terms due to inaccuracies in your credit report can be resolved by legally disputing these items.