My credit application was denied because of my credit report. What can I do? | Consumer Financial Protection Bureau (2024)

FAQs

My credit application was denied because of my credit report. What can I do? | Consumer Financial Protection Bureau? ›

Submit a complaint

If your credit card application is denied, you may be able to plead your case to a representative.

You should dispute with each credit bureau that has the mistake. Explain in writing what you think is wrong, include the credit bureau's dispute form (if they have one), copies of documents that support your dispute, and keep records of everything you send.

You are entitled to a free copy of your credit report

You have the right to get a free copy of your credit report within 60 days of being denied credit. Simply contact the credit reporting agency that provided the credit report and ask for a free report.

The Equal Credit Opportunity Act makes it illegal for a creditor to discriminate in any aspect of credit transaction based on certain characteristics.

Applying for a loan or credit card can affect your credit score, but if the lender denies your application, that decision won't have any bearing on your credit health.

The Fair Credit Reporting Act provides consumer credit protections that include a requirement for issuers to tell you why your application was rejected. This document is called an adverse action notice or adverse action letter, and you can expect it to arrive between seven and 10 business days after your rejection.

The Fair Credit Reporting Act (FCRA) is the federal law that, among other rights, gives you the right to dispute incomplete or inaccurate information on your credit reports. The credit reporting company must take steps to investigate the dispute when you notify them of an error.

A hard inquiry from a card application can cause a small, temporary drop in credit scores. A denial or approval won't hurt your credit scores, because decisions aren't reflected in credit reports. When making lending decisions, card issuers use credit reports and credit scores to determine creditworthiness.

What does the act say must happen if you are denied credit? ›

If you've been denied credit, the creditor must give you the name and address of the agency to contact. Different federal agencies, including the FTC, share enforcement responsibility for the ECOA. Report your concerns to the creditor. Sometimes you can persuade the creditor to reconsider your application.

Summary of FCRA Consumer Rights: On April 19, 2023, the CFPB amended the mandated FCRA Summary of Consumer Rights that consumer reporting agencies must provide consumers whenever there is a consumer request for disclosure of the consumer's file.

Step 1: Call the Issuer to Find Out Why

Credit lenders are required by federal law to tell you the reason it rejected your credit application or inform you of your right to request that reason if you ask within 60 days of denial.

You can request and review your free report through one of the following ways: Online: Visit AnnualCreditReport.com. Phone: Call (877) 322-8228. Mail: Download and complete the Annual Credit Report Request form .

Yes, you can reapply for the same credit card or a different one if your application is denied. However, it is essential to understand the reasons why your application was denied and work towards fixing them before reapplying. It is also advisable to wait for at least six months to increase your chances of approval.

A hard inquiry from a card application can cause a small, temporary drop in credit scores. A denial or approval won't hurt your credit scores, because decisions aren't reflected in credit reports. When making lending decisions, card issuers use credit reports and credit scores to determine creditworthiness.

How long should you wait before reapplying for a credit card? After a credit card denial, you may be tempted to apply again right away. However, it can pay off to spend several months (potentially even six months or longer) improving your credit and financial situation before you apply for another card.