When an Illinois consumer fills out a loan application, it typically means that they are planning something major. A home or car purchase is likely. Or, if it’s a smaller, personal loan, a wedding, vacation, or home improvement project are strong possibilities. Whatever the case, a loan application rejection means that your plans come to a screeching halt. When denied a loan in Illinois, the first thing you should do is find out why. Luckily, anyone who gets turned down for a loan or line of credit may request free copies of their credit reports. It’s important to take advantage of this opportunity when denied credit. This is especially true if the rejection comes as a complete surprise.
Finding out why your Loan Application was Rejected in Illinois
There are a few reasons why loan applications are rejected in Illinois, but the most likely explanation has to do with credit reports and credit scores. If there are negative items on your credit reports bringing your credit score down, it is harder to get loan approval. Unfortunately, a fair to bad credit score makes you a risky borrower in the eyes of a lender. Of course, there is a chance that your low credit score isn’t entirely your fault.
When looking over your credit reports, you should verify the accuracy of the items you see. Negative items such as delinquent accounts, repossessions, and bankruptcies cause credit scores to drop. So, if you have these items in your credit history and they are legitimate, it’s understandable why your credit score is low. However, for Illinois consumers who find these things on their credit reports and don’t recognize them, there is a more complicated issue.
Credit reporting errors are incredibly common, and result from several types of incidents. For example, delinquent accounts that you don’t recognize are likely proof of identity theft. (more…)