Turned Down for credit

You have been turn down for credit?
When a lender receives your Fair Isaac credit bureau risk score, up to four “score reasons” are also delivered. These are the top reasons why your score was not higher. If the lender rejects your request for credit, and your FICO score was part of the reason, these score reasons can help the lender tell you why your score wasn’t higher. These score reasons are more useful than the score itself in helping you determine whether your credit report might contain errors, and how you might improve your credit health. However, if you already have a high score (for example, in the mid-700s or higher) some of the reasons may not be very helpful, as they may be marginal factors related to the last three categories described previously (length of credit history, new credit and types of credit in use).
If you have been turned down for credit, the credit bureau gives you the right to obtain the reasons why you had been refused within 30 days. You are also entitled to a free copy of the credit bureau report within 60 days, which you can request from the credit reporting agencies. If the score was a primary part of the lender’s decision, the lender will use the score reasons to explain why you didn’t qualify for the credit.
Since there is no “score cutoff” used by all lenders, it’s hard to say what a good score is outside the context of a particular lending decision. For example, one auto lender may offer lower interest rates to people with FICO scores above, say, 680; another lender may use 720, and so on. Your lender may be able to give you guidance on the criteria for a given credit product.
An important time to check your score is six months or so before a major purchase, such as a car or home loan. This gives you time to make sure your credit report information is right, correct it if it’s not, and improve your score if necessary. In general, any time you are applying for credit, taking out a new loan or changing your credit mix is a good time to check your FICO score.
Make sure you’re buying your FICO score. Some businesses will sell or give you credit scores that are not FICO scores and may not be used by any lenders at all. These services may also give you credit management advice that does not apply to FICO scores and could actually hurt your credit standing with lenders.
If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This won’t improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time. And you won’t lose points for seeing a credit counselor.
Be aware that paying off a collection account, or closing an account on which you previously missed a payment, will not remove it from your credit report. The score will still consider this information, because it reflects your past credit pattern.