If you currently are or have ever been in financial trouble and are trying to regroup, it may seem like an insurmountable task. However, if you have a plan with some direction, it may help. If you have been denied credit, this direction could come from your credit report.

Whenever you are denied credit, you are entitled to a free credit report from the bureau that provided information to the lender. On the credit report there will be four reason codes (there are 40) why your credit request was denied. A plan could be developed to address the reasons given for your denial.

According to Equifax the most common reasons consumers are denied credit are:

• Serious delinquency, public record information, or collections filed.

• Time since delinquency is too recent or unknown.

• Level of delinquency on accounts is too high.

• Amount owed on accounts is too high.

• Ratio of balances to credit limits on revolving accounts is too high.

• Length of time accounts have been established is too short.

• Too many accounts with balances.

Fixing the reasons for denial is probably a good first step in a financial plan to fix your credit score.

Remember, if you’re not working the system, it’s working you.

PapaJoe

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