How to correct your credit report and get approved for loan

You just found out that your loan application has been denied, you are in a fix as to where to get help, you can’t figure why your application did not go through, your hope of getting money has been dashed. What is the forward? Do not be discouraged there is still a way out of this situation; you were denied the loan because the lender does not have confident in use. A loan would not be approved for three main reasons, insufficient evidence repayment potential, insufficient income to fund the debt and bad credit, when lenders find you in this situation, they consider you a very risky business and you would surely be denied the loan. Lenders will not loan their money to business or person that have not been able to convince them with sufficient document to repay the loan.

Here is what to do when you loan application failed, remember your credit history will be checked when you apply for a loan, you might be wondering why lenders ask for a credit report before granting a loan, it is because they want to know if you have a bad credit history and once they know that your credit history is poor, consider the loan application over but when your credit history is seen to be good, your loan application will be consider, therefore before applying for a loan make sure you have put your credit history in order. Do you know that there are credit report bureau that collects transactions of everybody, the information that this credit reporting bureau keep are sold to banks, credit card companies, insurance companies and potential employers.

Credit Report Information

Your credit report will work either for or against you, since lender will use it to decide if they would loan you money or if employers will hire you. Since your credit report contains your name, address, date of birth, social security number as well as name of your employers, the credit report will reveal the various debts you are linked too and reveal how fast you paid, it also states an overdue account and if it has been sent to collection agency. Also other information that is included in your credit report includes, foreclosure, tax lieu and bankruptcies

What to do with Credit Report

It is advisable that you request for your credit report once a year, it is your right, look at it properly if you are planning to make a major purchase, such car, home or any valuables, in order to correct any abnormality. A negative credit report will stand between you and the loan, therefore look at it now before approaching the lender in order to avoid embarrassment. How would you feel when you hear that you have been denied the loan?

Where to start

Go through your local yellow pages and look for credit reporting agencies or credit rating, your file may be available in more than one agency, therefore contact all the reporting agencies listed to find out if they have a file in your name and social security number, and request a copy of your credit report, though most of these reporting agencies request a small fee to before issuing the credit report, but if you have already been denied a loan, you can request for a free credit report within 60 days of loan denial and also when you are unemployed.

Correcting Your Credit report

After going through your credit report, you might come across mistake and inaccuracies, there are credit bureaus that can help you investigate and correct any mistake found on the report.

You have to contact this credit bureau in writing explaining the information that you think is wrong but make sure your name, address and social security number is included and state clearly the items that is being disputed in the credit report with sufficient evidence to back up, include copies of documents that support your claim.

Send the letter through reputable courier and request for delivery receipt, as this will show that the credit bureau received your mail also keep copies of your correspondence. The credit bureau company will investigate within 30 days and notify you as well as other credit bureaus of the correction and you will be given a free copy of the credit report.

When you are sure that your credit is in order you can reapply to the loan again.

Where to get loans

There are many lenders out there but you have to try as many as possible until you find the best and you can always find many of them on the internet.