Reason Credit is Denied

Credit bureaus or credit reporting agencies do not approve or deny credit. Their business is credit reporting and the have a vested in accuracy of those reports. Each credit grantor decides what standards a consumer must be granted credit. There are many reasons why a credit grantor may denied a consumer's request for credit:

-Low Credit Score: The information contained in a credit report is synthesized and combined using a very complicated calculation method that results in a credit score. Often creditors will deny applications based only to score without looking at the individual elements in the calculation.

- Incorrect Information: Your credit report may contain information belonging to another individual. For example, if you are Junior (Jr.) you may have your parent's (Sr.) credit information in your file. A regular credit report review is the best way of making sure that the information is accurate and true.

- Debt to Income Ratio: If the ration of a consumer's total monthly debts compared to his or her total monthly income is too high, the creditor may decide against extending more credit to the consumer because the lender feels the consumer may not be able to afford the payments.  The equal credit opportunity act requires to consider as source of income (1) earned income, (2) Social Security and (3) Child Support / Alimony.

- Delinquent Payment History: If the credit report contains a history of late payments or accounts that were never paid, there is a very strong chance that a future application for credit will be denied.