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What To Do If You Are Denied Credit

Applying for credit can be as easy as filling out a few lines through a website. Most credit card companies make the application process easy so that more people will apply for their product. Most credit card companies will inform you quickly if you were approved or denied for their product.

If you are approved the next steps are usually simple, the card provider sends you a new card in the mail along with a number to activate the card. But when you are denied it sometimes feels like a crushing blow, so what should you do?

Under federal law, if you are denied for credit, the company declining must send you a notice of the reasons why. This paperwork is called and Adverse Action Notice. You will also be able to request a copy of the credit report that the company used in their decision-making process.

If you feel that there was an error based on information related to the application, you can reach out to the provider and try to reach a resolution with them directly. If you request your credit report and notice an error on the report that caused the denial you should reach out to the credit bureau directly to dispute the information.