Why are people denied credit?
Sometimes people are denied credit because they have little credit history or have a short work history. If you’re denied credit at one location, you can try to gain credit at another, or you can wait six months and try again. It’s important not to apply for credit at every available store. This could make you appear as if you’re seeking more credit than you can afford. You could be denied credit because of: • Lack of credit references • Insufficient income • Irregular or temporary employment • Too short a period of residency or employment A bad credit record is not easy to overcome. By law, you have the right to know why you were denied credit. When you apply for a loan without a credit record, a bank or other lending institution may require you to have a co-signer. A co-signer is a relative or friend who also signs the contract and is responsible for paying if you can’t make the payments.
