Credit Management Q&A
Q: One of my creditors has denied me new credit. I wonder if it’s due to my credit score going down, since I’ve been out of work for a while and behind in mortgage payments. Can I find out why I was denied credit?
A: If you’ve been denied credit or didn’t get the rate or terms you want, you have the right to ask some questions:
• Ask the creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in the system, and how you can improve your application.
• If you are denied credit or not offered the best available rate due to credit report inaccuracies, you have the right to dispute the inaccurate information with the credit reporting company.
Under the federal Equal Credit Opportunity Act (ECOA), it’s against the law for a creditor to deny you credit or terminate existing credit simply because of your age.
Now that you know more about credit scores, sign up for TransUnion Credit Monitoring today and receive a FREE credit score.