What Can I Do When My New Credit Is Denied?

When you have new credit denied, it is possible to have the creditor reconsider your application. This starts with finding out why the application got denied in the first place. It is easy to learn why your application met with denial.

Lenders have to give you an adverse action letter to explain why you were denied. The lender will also give you directions on how to get your complete free credit report (from the bureau that they used). 

After you read through the adverse action letter, you might contact the creditor to request that a one of their representatives reconsider. This becomes more likely to succeed if you have new or additional information that they did not include originally in the application. Now is the time to provide it.

You might not have listed all of your eligible income sources in the application. These can include a spouse’s income, government benefits, child support or alimony, or retirement savings. There could also be incorrect information on your credit report that you need to get corrected. This is a matter of opening a dispute with the credit bureau (filing online is the best way) that contains false or incomplete information.

If it is the same creditor with whom you have another account, you might ask them to move some of your existing credit line to the new account. Experts generally recommend that you wait six months between different credit card applications after credit has been denied. Every person’s situation is different and so your time line could vary. 

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