Free Credit Report Denied Credit Privilege

credit scores from all 3 bureaus

Everyone has the right to a free credit report (when) denied credit by the lender. This is made possible by the Fair and Accurate Transactions or FACT Act. According to the law, the individual who applied for the credit but has been denied should be sent what is called an adverse action letter which is basically what will explain the reason or reasons for the decline in the application.

Get a free credit report denied credit

The adverse action letter can come in one of three ways; over the phone, by mail or orally. It can be credit free credit report denied creditbased or non-credit based.  A credit based adverse action letter is sent to those who have been declined the credit application based on their credit report and score. Reasons will be given on why you have been rejected as well as include the credit bureau where the company obtained the credit report. It will further explain that the credit bureau is not involved, in any way, in the decision making. It will include information on where you can get the free credit report (for the) denied credit within sixty days. You are only entitled to claiming the free credit report (for) denied credit from the credit reporting company where the lender obtained the credit report. Because errors in credit reports are possible, the adverse action letter will give you the chance to correct inaccurate credit report information should there be any.

A non-credit based adverse action letter is when you have been rejected the credit application for reasons other than your credit report and score. It will state the reasons for the rejection and provide you with an Equal Credit Opportunity Act or ECOA. When you receive this kind of letter you are not entitled to a free credit report (for) denied credit.

Getting rejected from a credit application can be discouraging. The first thing that you should do is take a good look at the adverse action letter and find out why you were rejected. Avail of the free credit report (when) denied credit if the reason for your rejection is credit based. The credit report and score that will be given to you is the very same thing that the lender was provided with. Make sure everything in it is accurate.

Once you have determined what the reason is, try to improve your credit record and only apply when your score has improved. It is not advisable to hop from one creditor to another in the hopes of getting lucky and getting a loan granted. This is a big no-no since application for credit, whether you have been rejected or accepted, will appear on your credit record. Consecutive applications and subsequent rejections will only damage your record and make future creditors think that you are indeed having a hard time getting a loan and will be reluctant themselves.

So take advantage of the free credit report denied credit privilege and build your credit report from there.