Common causes of denial of loans and credits:
The refusal of credit, which is also sometimes called "the rejection of credit" is an event in which a person or a company is not approved for requested credit line or loan. There are a number of reasons why a line of credit application may be rejected. The most common causes of refusal of loans and credits are lack of credit history and bad credit history. The lack of credit history is a situation where a person has never held a credit or have had a very limited line of credit. Refused credit can occur if a person with no credit history request a credit line or a person with a limited credit history has applied for a credit line that will make large amounts of money or credit available. A
…show more content…
Another reason for the denial of credit may be the lack of information. If the applicant does not have enough information or enough credit on their application, this can result in denial of credit. In such cases, the applicant may be able to claim a credit in the future with the full application or modified application. In cases where a person experiences denial of credit due to bad credit or no credit, however, it is unlikely that a second request will result in a positive response from the lending institution. All you can do is work on improving the credit history and try again with a new application at a later date. In the US, under the Act, the Equal Credit Opportunity Act, a federal law passed in 1974, credit lenders must respond to loan requests within 30 days. If an application is a denial of credit arising, credit lender must provide a reason for the refusal. The reason cannot be based on age, nationality, marital status, race, or dependency of a person on welfare. If a person is denied the credit due to credit history, you have the right to see a copy of the credit report that led to the …show more content…
Depending on the selectivity of the institution extends credit line of credit in the short credit history or even slightly bad credit can also lead to rejection. In the US, people have the right to see your credit report within 30 days of receiving a denial of credit. Unlike other cases where people may have to pay a fee to see your credit report, be rejected by a credit line allows the credit report requesting person or organization without charge. Persons or organizations who have rejected loan applications should make use of these documents is due to them: both the credit report, as mentioned above, and the refusal letter that receive credit. The Law on Equal Opportunity Credit Act (ECOA), people in the US cannot be discriminated against because of age, sex, race, religion, marital status or national origin in the credit application. How it works is that companies that extend credit lines must give a reason for which an application is refused. The information contained in this letter, as well as information on the credit report, can be used to advise the applicant on how you can go about improving your
It is up to you to know what is on your credit report and keep the data up to date. You might have paid your bills on time, but your credit report may show that your credit is less than perfect. You may have had a credit dispute with a merchant that was corrected, but not shown on your report. You may have a bankruptcy that was not properly recorded. You may also have experienced credit fraud.
At the end of the day, credit shows true financial independence and having excellent credit can get you what you want and save you a lot of money in the long run with the possibly of lower interest rates. Credit is a universal number that landlords, lenders, finance company and even an employer look at to determine your
Also, if your credit rating is low, you might receive the worst pre-approved offers from
On the off chance that you have built up some acknowledge, for example, paying off an auto installment, paying on a gas card or a Visa, or have already paid off an advance; then the bank or loan specialist will think of you as a lower hazard. On the off chance that you have had advances that you have not paid by any stretch of the imagination (defaulted on), or you are constantly late with installments, then that data is recorded on your credit report. Instructive credits take quite a while to pay back generally and are less demanding for them to give on the off chance that they know they will have steady on-time installments. In the event that you apply for an understudy advance and you are precluded in light of the fact that from claiming awful credit or no acknowledge, you can reapply for a co-endorser.
Posttraumatic growth, as defined by Calhoun and Tedeschi (1999, p. 11), is the “positive change that the individual experiences as a result of the struggle with a traumatic event.” It is a process by which an individual who experience significantly stressful events utilize individual characteristics, support, disclosure and more significantly, cognitive processing of cognitive structures to neutralize the traumatic event to achieve growth (Tedeschi & Calhoun, 2004). In a study by Duan, Guo and Gan (2015) it has been stated that life threatening events cause PTG such that positive changes in behavior and transcendences from traumatic experiences are manifested in PTG. Furthermore, they pointed out that predictors of health-related outcomes, such as PTG, in the context of traumas include personalities, traits, and qualities. Accordingly, individuals with stronger positive traits are able to fully utilize their internal and external resources to overcome their adversities in life.