No one likes being denied a loan because of their credit score. In fact, it’s downright embarrassing in some cases. The good news is that, if a creditor denies you, they will send you a letter than tells you the reasons you’ve been denied. If they have denied you because of your credit score, you are then allowed to get a copy of your credit report for free. (Of course, you’re always able to get a free credit report once per year via the Annual Credit Report website, as well.)
Here are some tips and tricks you can follow in order to try to get the bank to loosen up a bit, improve your credit score, and get access to the credit you want and need:
- Check your credit report for errors. If there are any errors, you have a right to see them corrected. Follow the procedures set out by the credit reporting agencies to correct errors, and you’ll see your credit score start to rise. The credit reporting bureau is required by law to investigate your claim within 30 days. If they do fix an error, you can request that the correction be sent to any company that’s asked for your report recently.
- Pay your bills on time. The single most important contributor to your credit score is how you pay your bills. If you pay late or not at all, your score will drop.
- Pay down your debt. One of the most important factors in your credit score is the ratio of debt to available credit. If your credit cards are all maxed out, it will negatively affect your credit score. You need to utilize less than about 30 percent of your overall credit.
- Consider a secured credit card. A secured card can create a positive mark on a credit report that’s otherwise not so good, and have an upward pull on your credit score.
- Pay attention to your credit card statements. Watch for unauthorized charges. If you become the victim of identity theft, you don’t want it to have to negatively impact your credit score.