REASONS FOR BEING TURNED DOWN FOR CREDIT

Creditors have a lot of different reasons that they give for turning down credit applications. They have every right to refuse new credit and turn down your application. Yet, you also have every reason to know exactly why you were turned down for a new line of credit. Here are some examples of what are acceptable reasons to be rejected, and what creditors are not allowed to give you as a reason for rejection.

• Acceptable reasons: 

• Incomplete credit application

• Not enough credit references provided

• Unacceptable credit references provided

• Cannot verify credit references

• Temporary or irregular employment

• Length of employment

• Insufficient income

• Unable to verify income

• Excessive income obligations

• Length of residence

• Temporary residence

• Cannot verify residence

• No credit file

• Limited credit experience

• Poor credit performance

• Delinquent past or present credit obligations

• Garnishment, attachment, foreclosure, repossession, collection, action or judgement 

• Bankruptcy 

• Value or type of collateral is insufficient

• Not eligible for membership

If a creditor gives a reason for rejection like “You did not receive enough points on our credit scoring system” or any other indefinable phrase without concrete evidence and reasoning is not enough for you to be denied credit. There must be specific reasons why you were offered less favorable terms, why your account was closed, or why you were denied. 

Information pulled from: 

Notley, S. Credit solutions: Proven strategies to establish and re-establish your credit. The Manning Group

If you ever have questions, contact us - your expert consultants. 

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Solutions Team