Denied Credit? Be Direct, Get Specifics

Millions of Americans are suffering through the hassles of Credit Denials.

Everyday, American Consumers are attempting to apply for a new Credit Accounts, only to be turned-down, for unspecific reasons.

But what would make anyone, seek out new Credit in this sluggish Economy? Many American Consumers are just sick of what the new Credit Terms are doing to their Finances. The Terms have changed, and so, the Consumer wants to change.

But often many American seeking better Credit Terms, try to apply for Credit only to find rejection. So what should American Consumers after they've been rejected for Credit?

The Federal Trade Commission ("FTC"), Provides some practical tips:

• Get specific: know why the application was rejected. The creditor must tell Consumer the specific reason for the rejection. Consumes are entitled to learn why they were denied Credit upon request, within 60 days.

An acceptable reason might be: “your income was too low” or “you haven’t been employed long enough.”

An unacceptable reason might be “you didn’t meet our minimum standards.” That information isn’t specific enough.

• Consumers should check their Credit Reports.

I was helping a Woman last week who was looking to do a Balance Transfer to a new Credit Card. She was seeking better terms. But when she called the Credit Card Company, she was rejected. When she asked why she was turned down, the reply she got was, "you'll have to check your Credit Report".

I informed her of her Rights under the Equal Credit Opportunity Act and told her that the bottom-line was that it was her responsibility to contact the Credit Card Company for specifics.

She called and found out that her "Debt to Income Ratio was too high". What means that her Debt is too high compared to her Income. She had too many Outstanding Balances on her Cards and that spelled trouble for the Creditors.

Tragically, she was someone that I couldn't help get out of that card. I told her to keep making her minimum monthly payment, and increase it by $5 to $10 extra every month.

In this case the Creditor did nothing illegal. It may have been ethically wrong but not illegal. If the Creditor had acted illegally, The FTC spells out the damages the Creditor could have suffered in Court.

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DEBT WARRIORS™ are not Attorneys. WE ARE experienced Credit Repair and Debt Management, Negotiation and Debt Settlement Coaches. WE teach American Debtors how to manage and settle their debt (for themselves). The information on this blog, should not be considered legal advice. Debt Warriors offer helpful Credit and Debt "Self-Help" video course, Personal Finance, and information products.

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