Dear residents, one common problem you may have faced in your financial life is rejection during the loan approval process. Suppose you need an emergency loan for buying a car, a house, or medical purposes, etc. But at this crucial time, you have been rejected by the lenders. What will be your primary assumption regarding this rejection? Let us guess. You are feeling clueless. Because despite having a job with a handsome salary or a decent earning from your business, they have rejected your application for a loan. Now let’s unveil the fact. The fact is, you have bad credit. Yes, this is the truth. Many residents get rejected for loans because of having bad credit history. Are you worried about yourself? Don’t panic. We, the Great American Credit Repair, arePlease don’t worryoutline the necessary steps here with you to solve your problem. Let’s disclose the necessary steps you should take after being denied.
Step 1: Identifying the reason for rejection
The first step after getting rejected for a loan is to find out the reason for the rejection. Your loan approval depends on the solution to the problem. Low credit score, late payments, unpaid debts, closing accounts randomly, collections or charge-offs, or credit utilisation, etc., are some common reasons for rejections.
Step 2. Checking Credit Reports
After identifying the reason for the rejection, check your credit report for accuracy and dispute the errors. You can download a free copy of your credit report from three credit bureaus: Experian, Equifax, and TransUnion.Review your credit attentively. Sometimes, credit reports carry lots of inaccuracies. For example, wrong address, duplicate accounts, mismanagement in debt payments, etc. If you find any errors in the credit report, dispute them as soon as possible. For disputing mistakes, you can directly fill out the form of credit bureaus with supportive documents, or you can contact creditors or lenders. Credit bureaus typically take 30 days to process disputes.
Step 3. Improving Your Credit
This is the time when you know what are the reasons behind your bad credit and the denial of loans. So, you have to improve your credit. You can follow these steps:
- Check your credit regularly to avoid any established errors.
- Be aware of timely payment. It carries 35% of the credit score. So, late payment is one of the main issues of a bad credit score.
- Utilise your credit according to your credit limit. Don’t use more than 30% of your available credit.
- Try to pay your unpaid past debts as soon as possible. If you are struggling with a large amount, negotiate with the creditors to get a comfortable payment plan.
- Avoid applying for multiple credit accounts within a short period of time. It decreases the value of credit.
- If you are new in opening a credit account, use a credit card with a good credit history to create your credit card as a strong and trustworthy credit card.
Step 4. Hiring a Professional Credit Repair Company
As a smart move, you can hire a professional credit repair company if you are facing complexities in handling your credit. There are lots of credit repair companies to help you with this matter. You don’t need to take any pressure regarding your report accessing, identifying and disputing errors, negotiations with the creditors, making plans for paying off debts, or overall (credit improvement). But while hiring a credit, you need to be careful about some matters. Such as;
- Be careful of the scammers. There are some fake companies, too, that make attractive fake promises to improve your credit.
- Don’t pay money before the service. Because, according to law, all of the legal credit repair companies are allowed to after after-service fees.
Note: Not all of the credit repair companies are scammers. You just need to be aware of the laws and policies to avoid them.
How can the Great American Credit Repair company help you?
The Great American Credit Repair company has been indulging in helping people to rebuild their credit after denial and at the time of their financial crisis since 2008.
If you are facing challenges with your credit denial matter, you can contact the Great American Credit Repair company to rebuild your credit with legal steps.
The services we provide are-
- Identifying and disputing errors by experts
- Negotiate with the creditors with proper legal documents
- Create credit rebuilding or debt payment plans according to the customer’s advantages and disadvantages.
You might stay in Florida, New Jersey, California, Pennsylvania, or Virginia, but the experts of this company are always ready to help you with legal policies.
Note: Denial of Credit is not the end of your financial career. Be focused on removing all the negative items from your credit and rebuild it powerfully.