For most people receiving the news that you have been refused credit can be devastating at first, but rest assured by understanding why you were denied your application you can help your future requests by making some changes to help increase your credit score.
Firstly check your credit report; mistakes have been known to happen quite regularly by the credit bureaus. These organizations handle millions of credit files every year and only you will recognize if something is wrong. Do not worry about any irregularities, by contacting the company the information can be corrected. Try and make a habit of checking your report frequently, this will also help when you are ready to apply again for new credit.
Also for how long have you managed your credit file, some companies will wish to see several years of good solid credit history before granting extra credit.
Recheck your application form, sometimes a small error on your part did not match up with your credit history on your files. If a company finds conflicting evidence they may question other answers on your application.
On your credit history have you recently made any late payments, allowed your balance to go over the agreed limit or are you maxing out your cards each month. These reasons can raise a red flag against any further credit increases.
How many applications have you made for a new line of credit, once two or three requests enter your credit file companies will start to look further into your application. Unfortunately following the first refusal it is often advisable to wait before reapplying since financial institutions will take the view if you were considered a risk to another company then they too will deny you the credit.
Apart from the searches made against your credit history, banks and credit card companies will also look at your personal risk factor. How long have you been in your current employment, whether your career is considered secure. Your home life, have you lived at your address for a while or are you someone who moves around frequently.
As you can see there are many different factors that combine when it comes to applying for credit. By working through the above points, try to pay a little extra off any existing debts each month, and waiting that extra period while adjusting your credit file history, this should ensure that the outcome to your next credit request is successful.