Challenge Your Credit Card Application Denial

Due to the recent economic crisis, it has become quite difficult to get a mortgage, vehicle loan, and even a credit card. If you a bad credit score, it’s very difficult. But if you have a good score, yet your credit card application gets rejected, you have to right to challenge it.

Get a Copy of Your Credit Report

Under current credit law, you are entitled to receive one copy of your credit report from each of the three credit bureaus (Trans Union, Equifax, and Experian) without any cost. Once you receive you rejection letter, find out which credit bureau provided information to the creditor.

Now, send a copy of your credit report and the rejection letter, along with a letter that mentions your personal details including name, address, Social Security, and so on, which makes it easier for the bureau to identify your account. Make sure you send these documents through certified mail that requires signature of the recipient on delivery (and you get the receipt). So, you will have a proof that the letter sent by you was received on the other hand.

Why Should I Check My Credit Report?

You must check your credit report for errors once every quarter. As pert the data released by United States Public Interest Research Group, around 80% of such reports have errors, and 25% among them are very grave causing credit card application denial. In case you find any error in your report, contact the respective bureau, in writing and ask them to fix the errors.

Ask The Credit Provider for Further Clarification

Many credit providers simply reject your application (literally without any reason), inform you about the source of credit data used by them (which they haven’t). If you find out, after you get a copy of your report, you score is completely okay, with good score and without any error, you must find more about the reason for rejection of your credit card application (and you have legal rights to do so). Under Section 615(b) of Federal Fair Credit Reporting Act, you can write to the creditor asking specific reasons for such rejection.

If There’s an Error in Your Credit Report

If there are few errors in your report that needs to be fixed, get it corrected by the credit bureau, and send the corrected version to the credit provider. Send a letter along with the corrected version mentioning the issues (that are now fixed). However, this doesn’t guarantee that the issuer would change its decision.