No, a credit bureau cannot approve or deny an application for credit. Credit bureaus are simply data repositories that collect and store information about consumers’ credit history They do not make lending decisions.
Instead, it is the lender who decides whether to approve or deny a credit application. The lender will use the information in your credit report, along with other factors such as your income and employment history, to assess your creditworthiness and determine whether you are a good risk for a loan.
If you are denied credit, the lender is required by law to provide you with a written notice that explains the reasons for the denial. This notice will also tell you how to obtain a free copy of your credit report from the credit bureau that provided the information to the lender.
You can check your credit report to determine whether any mistakes were made that might have led to your rejection. If you find any errors, you can dispute them with the credit bureau.
Here are some additional things you can do if you are denied credit:
- Contact the lender to discuss the reasons for the denial. They may be able to provide you with more specific information about why your application was denied.
- Improve your credit score. This will make you a more attractive borrower to lenders in the future.
- Consider applying for a secured credit card. This type of card requires a security deposit, which can help you build credit history.
- Be patient. It may take some time to improve your credit score and get approved for credit.
Here are some additional resources that you may find helpful:
- Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/ask-cfpb/my-credit-application-was-denied-because-of-my-credit-report-what-can-i-do-en-1253/
- Federal Trade Commission (FTC): https://www.consumer.ftc.gov/articles/disputing-errors-your-credit-reports
- Experian: https://www.experian.com/
- Equifax: https://www.equifax.com/
- TransUnion: https://www.transunion.com/
What can you do after you’ve been denied?
According to Matt Schulz, chief credit analyst at LendingTree, you should concentrate on raising your credit score or obtaining new credit options after learning why you were turned down.
Before applying for another credit card, you should do some research on websites like Select to find out what kinds of credit scores are required. Remember, you can always work on improving your credit score by making payments on time and in full.
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It can be upsetting to have your application for a credit card denied, especially since credit cards can be such a helpful tool for financing your lifestyle and offering rewards and welcome bonuses along the way. To avoid paying high interest rates or having their credit scores negatively impacted, however, it is imperative that people pay off their balances in full and on time.
Don’t give up if you need a new credit card and you don’t know what to do if your application was turned down. Select details how applying for a credit card affects your credit score below, along with what cardholders should do if their application is denied.
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