Applying for a line of credit can be a daunting process, and it can be incredibly deflating if your application is denied. Instead of panicking, take the time to learn why you were denied so that you can begin to rectify the problem and strengthen your credit in the process.
In the article “Six Steps to Take if Your Credit Application is Denied,” the experts at the Equifax Finance Blog explain how to make your credit application denial a learning process:
- The first step to improving your credit is to read the denial letter to learn the reason behind the decision. Make sure to reach out to the lender if you have questions about the reasoning they present in the letter.
- A denial also gives you the opportunity to get a free copy of your credit report from the agency that was used to review your credit. However, make sure you request a copy of your report within 60 days of receiving the denial letter.
- Don’t be afraid to ask questions after receiving the denial. If you’re still unsure about exactly why you were denied, ask for further clarification. You can also ask what you can do to improve your chances of being approved for a loan in the future.
- Once you’ve requested your free copy of your credit report from the reporting agency, make sure to review your credit score. When you apply for a line of credit, this counts as a hard inquiry on your report, which can negatively affect your score.
To learn more about the steps you should take after being denied a line of credit, be sure to read the full blog post mentioned above. For more information on personal finance, credit or insurance, be sure to visit the Equifax Finance Blog.