Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Fighting a credit denial

By Jen Haley, producer


NEW YORK (CNNMoney.com) -- Denied credit? Even if the economy is improving, it's still hard to get a loan. Here's what you can do if you can't get the banks to open up their purse strings.

Get the letter

credit_denied.ju.03.jpg

If you apply for a credit card and you're denied, you will typically receive a letter that lists the reasons why you've been denied. And if you're denied because of your credit score, you will automatically qualify to get a free copy of your credit report.

Don't delay. You must ask for your report within 60 days of receiving this notice. Keep in mind that even if you didn't get denied, you can get a free copy of your credit report at annualcreditreport.com.

If you don't understand the reason why you've been denied, or the reason is just flat out wrong -- say, for example, your credit report lists a delinquent credit account that you never had -- make sure you contact the issuer and get an explanation.

Get it fixed

Write a letter to the credit bureau and include copies of documents that support your position. The credit bureau must investigate your claim within a month.

Once a mistake on your credit report has been corrected, you can request that the revised version be sent to anyone who's recently pulled your report. But make sure you ask, because this doesn't happen automatically.

Pay down your debt

If you've recently been laid off or are going through a hardship, call your creditors and ask if you can work out a payment agreement. Maybe you can get your APR lowered so it will be easier to pay off that credit card debt.

If you have bad credit, think about opening up a secured credit card. Its works like a regular credit card except you put down a deposit that acts as your credit limit.

You may also consider getting added as an authorized user on someone else's credit but make sure that account holder pays their bills on time.

And finally be very wary about your credit card statements. Read them when you receive them. Now that credit card reform is headed our way, credit card companies may be implementing new fees, shorter grace periods and higher late fees. wary about your credit card statements.

Talkback: Have you had a credit card application denied? To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.39%3.41%
15 yr fixed2.67%2.68%
5/1 ARM2.84%2.85%
30 yr refi3.41%3.44%
15 yr refi2.69%2.72%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,481.48 -65.82 -0.35%
Nasdaq 5,217.70 -42.38 -0.81%
S&P 500 2,175.44 -11.46 -0.52%
Treasuries 1.58 0.01 0.39%
Data as of 9:14am ET
Company Price Change % Change
Cisco Systems Inc 31.06 0.08 0.26%
Huntington Bancshare... 9.51 -0.13 -1.35%
KeyCorp 12.08 -0.06 -0.49%
Microsoft Corp 57.95 0.06 0.10%
Marathon Oil Corp 16.06 -0.37 -2.25%
Data as of Aug 24

Sections

Mylan shaves $300 of price of EpiPens, cutting price in half after criticism from Senator whose daughter uses the product. More

The U.K. is preparing to split from the European Union, which means about $1.3 trillion in trading relationships will have to be reset. More

The U.S. Treasury said American taxpayers could end up footing the bill for back taxes Apple and others may be forced to pay in the EU. More

Just 15 states are paying enough into their public pension funds to both pay promised benefits to retirees and pay down pension debt. More