Why Can’t You Get a Loan? 5 Unusual Things That Can Affect Your Credit Profile
Monday, December 4, 2017, 6:00 PM | Leave Comment
You probably already know things like paying your bills on time is important if you want to maintain a solid credit score.
If you have always paid bills like you were supposed to, but are still having trouble getting approved for a loan or credit card, you could be wondering why. What some people do not realize is that there are actually a lot of things that go into your credit score.
These are some of the more unusual things that could be causing your score to go down and that could make it difficult to get a loan.
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Not Having Credit at All
If you have never used a credit card irresponsibly or defaulted on a loan, you might assume you have good credit.
However, if you don’t have established credit at all, or if it has been years since you have had a loan or credit card, this could mean you don’t have a credit score.
Even if this might be better than having bad credit, it could still make it difficult for you to get a loan.
You may need to start out with a secured credit card so you can start establishing credit. If you use it responsibly, you should be able to build up a good credit score in time.
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Applying for Too Many Credit Cards or Loans
If you have been applying for tons of different credit cards or loans in an effort to get approved for something, you should know that your credit score could be taking a hit.
Each time you apply for credit, it can cause your score to go down a few points.
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Having Old Debts or a Record
Debts can stay on your credit report for seven years or more. If you have made mistakes in the past, or have a criminal record, this can also affect your ability to get credit in the future, even if it’s been a few years.
If you have a lot of old debt, you may want to meet with a bankruptcy lawyer to see if there is anything that you can do to handle the situation. In the case of a permanent record, an expungement lawyer might be your best bet.
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Having Too Much Debt
Having a lot of debt can be a bad thing. Even if you pay your bills on time, having a lot of debt can make lenders think twice about granting you a loan and can lower your score if payments don’t look to be helping.
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Identity Theft
If you feel you should have a good credit score, but keep getting turned down for credit, you could be a victim of identity theft. Working with a professional can help you determine if this is the case and can allow you to work on improving your credit score.
As you can see, there are many different things that can cause you to have a lower credit score. If you take steps to improve your score now, you can help increase your chances of getting approved for loans and credit cards in the future.
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Eileen O’Shanassy is a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.
