I recently applied for a loan at my local credit union and was denied. All the lender told me was that I didn’t have good enough credit. As far as I know, I should have good credit. I always pay my bills on time and don't go over my credit limits. How can I find out why my lender didn’t give me a loan?
The credit industry can feel confusing and quite honestly, shady at times. There is good news though. As a consumer in the US, you do have rights and protections when it comes to your credit file and how information is used. These protections come from the Fair Credit Reporting Act (FCRA) and are intended to establish accuracy, fairness, and privacy for your consumer credit file, aka your credit report.
Here's what you need to know:
When you are applying for credit I would always recommend you take a peek at your credit report so you know what your lender is going to see. 1 in 5 credit reports have errors on them that could affect your ability to get a loan or could make borrowing more expensive for you. If you feel like you should have good credit and your lender is saying otherwise, there is a chance there are errors being reported. To check your credit report go to Annualcreditreport.com. Their reports are always free!
It is important that you keep good financial records so you can prove when you paid on your accounts, your balances, etc. You will want to provide as many supporting documents as possible to prove the inaccurate info. The credit bureau has 30 days to complete an investigation and report back to you their findings. Once you find out that there were corrections made to your credit report, request another copy to verify that the information has been corrected.
The Financial Guide team at Your Money Line is here to work with your employees to help them understand their credit report, score, and steps to improve their financial health. To learn more about financial wellness services, contact us today!