Sample Request For Credit Report If You Have Recently Been Denied Credit

Applying for credit is often nerve-wracking. You wouldn't apply if you didn't need it, you're unsure what your interest rate will be, and you wonder how applying will affect your credit score. If you apply and the company says no, you have the right to know why.

Within 30 days of getting a credit application, the Fair Credit Reporting Act (FCRA) requires that a creditor notify an applicant of the credit decision. If a creditor declines to extend you credit, you are entitled to a statement of reasons.

The notice, called an adverse action notice, will also identify any credit bureau that provided information used by the creditor to deny you. The creditor may provide this along with the notice of action taken. Or a creditor may notify you of denial and tell you that it will give you specific reasons upon request. You should make this request within 60 days of the denial. You can use the sample request letter below.

Applying for Credit

There are many different types of credit options you can apply for. Common types include credit cards, personal loans, and mortgages. Your likelihood of getting credit is influenced by factors such as your credit score, income, and employment history. A higher credit score generally increases your chances of approval. This signals to lenders that you have a history of responsible financial behavior. A stable income and employment history also give lenders confidence in your ability to repay.

But, there are reasons companies deny credit. They include a low credit score, a high debt-to-income ratio, or a history of late payments. It's important to regularly check your credit report to address any issues that may affect your creditworthiness.

You can request a free credit report from annualcreditreport.com. For more information on applying for credit, read FindLaw's article Applying for Credit.

Consumer Credit Laws

Consumer credit laws protect the rights of people seeking credit. Under federal law, the Equal Credit Opportunity Act (ECOA) bans discrimination in credit transactions based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

Federal and state laws regulate consumer reporting agencies, which compile and maintain credit reports. State laws may also offer extra consumer protections. The state attorney general often plays a key role in enforcing these regulations. Consumers should be aware of their rights under these laws. Make sure to seek information from reliable sources like the Federal Trade Commission (FTC). Take appropriate action in the event of any credit-related discrepancies or violations.

Read FindLaw's article Federal Consumer Credit Laws Checklist to learn more about consumer credit laws.

Sample Request Letter

Request a credit report letter if your credit application gets rejected. When a creditor turns down your application, they must give you specific details about why. If a credit reporting agency made the report, the creditor has to tell you who to contact for more information on why the creditor denied you. By sending a request letter, you're using your right to get more details about why the company rejected your application.

You should send your request letter to the party that generated the credit report. This may be the creditor or a credit-reporting agency. If a credit-reporting agency generated the report, the creditor must give you the name of the person or office that you need to contact to order the statement or reasons for denial.