Credit Rejection

Credit record is one of the most important documents one can possess. It is more so in today's world where debt problems are looming large. In US an individual is having an average of $9,000 only in credit card debts. A person's credit report is a reflection of his management skills. It gives a complete evaluation of your past and recent credits. Based on this credit report the creditors decide of how credits worthy you are. A creditor's trust depends on how regular and efficient you had been while handling your past credits. Establishing or reestablishing credit isn't easy. Even if you've cleared your past credit, you may be turned down when you apply for a loan or credit card. It is important that you understand the reasons why credit grantors may deny extending credit.

There can be some probable reasons for which your credit request can be rejected:

You may not have held your present job or lived at your present address long enough. Some creditors require that you've been at your job or address for at least three years.
When applying for a loan, lenders are often interested in the reason you are requesting the loan. Sometimes, lenders do not believe your purpose for requesting the loan to be reasonable. Other times, lenders may have restrictions that do not allow them to make the kind of loan you are requesting.
If you're relying on a cosigner, the lender may not feel your cosigner can afford to take on any new liabilities.
A credit grantor may believe that you already owe too much on your present accounts. If this is the case, they will view you as a high risk and may refuse to extend you additional credit.
Your credit report may contain incorrect information about your credit .Whenever you are refused credit, you have the right to receive a free copy of your credit report within 30 days of rejection from the credit reporting agency that the creditor used. Take advantage of this opportunity to review your credit report and determine if there are any mistakes.
Finally, you may be turned down for credit if your credit report indicates that you have recently applied for numerous lines of credit. Lenders may question your motives or be concerned that you are at risk or overextending yourself.

If you've recently been refused credit, wait a while before applying again. Take some time to review your credit report and correct the problem that is keeping you from being credit worthy.