What happens if you are denied credit or don't get the terms you want?

If you've been denied credit, or didn't get the rate or credit terms you asked for, you should receive a letter stating, in general terms, the reasons why. If the creditor used a credit scoring, you should also receive an explanation of what factors negatively affected your score. The explanation won’t go into detail, but it might say something like “Your income was low” or “You haven’t been employed long enough.” Instead of giving you these notices, some lenders will simply tell you that you have a right to learn the reasons you didn’t receive the credit you wanted, if you ask within 60 days. A notice like this should tell you who to contact. Send a request to get the explanation you are entitled to.  

Check whether those factors look accurate. If you are not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information. The notice from your lender should give you contact information for any credit bureau whose information the lender used. You have a right to get a free report from a credit bureau within 60 days of being turned down for credit on the basis of a report from that bureau.

If a creditor says you were denied credit because you are too near your credit limits on your charge cards or you have too many credit card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time. Be aware, though, that if you pay down a credit card this month, it can take some time for that information to appear in your credit report and then be reflected in a credit score.