It is not easy to take up a credit denial from the lenders, especially when you need a credit badly. But, as a leading credit repair company in Orlando, we have noted that many people are unaware of the reason why they have been denied the credit. What we say our customers is that knowing the reason for denial is important to know fix your credit. Below are some of the common reasons why the credits can be denied. Check them out here now…
Loan and/or Credit Balances:
The lenders, as well as the credit card companies, will check your existing loan and/or credit balances. Most of them would like to find that you are using only a portion of the available credit. If you are found to use a larger portion of your credit, they would probably deny your credit request.
Credit Report Inquiries:
While checking your credit report, if the lenders are finding too many credit report inquiries, they are more likely to deny your credit application. It’s because they would think that you are applying for credit with several other creditors. This will be taken as a red flag among the creditors.
Credit Report Errors:
There are possibilities that your credit report may carry some errors and sometimes, this might be the reason for your credit denial. So, you must understand that this it is important to check your credit reports from time to time for the errors and fix them as soon as possible. This would save you from credit denials.
A short credit history could also be the reason for credit denial. This means that you have little or no experience with credit. Note that, you must have at least one credit account that has been active within the last 6 months. Without this, it is not easy to generate a credit score and hence, your credit application can be denied.
Collection and Charge-Off:
If you are having a collection agency to come after you, then it would impact your credit score negatively. Similarly, a charge-off would also impact your credit score even more badly.
If any of these reasons are known to be affecting your credit approval, then we would recommend you to act immediately to fix your credit. If you have any further questions regarding the credit repair services, feel free to contact us at 407-675-3605.