Equifax

Finance Blog

Can Equifax Decline My Credit Application?

Written by Robin Holland on August 9, 2010 in Credit  |   2 comments

Can Equifax Decline My Credit Application? By Robin Holland Sometimes we talk to consumers who think that Equifax has declined their credit. No matter how many times we hear people say it, the answer is No! The idea that Equifax and the other credit-reporting agencies…

Credit reporting agencies cannot decline credit card applicationCan Equifax Decline My Credit Application? By Robin Holland

Sometimes we talk to consumers who think that Equifax has declined their credit. No matter how many times we hear people say it, the answer is No!

The idea that Equifax and the other credit-reporting agencies can decline your credit is a big MYTH!. The credit-reporting agencies are a part of the credit application process, but a credit-reporting agency cannot grant or deny you credit.

But because so many people call to ask this question, I thought it might help if we talk about the process that occurs every time you apply for credit:

Step 1: You, the consumer, apply for credit with a store, a credit card company, or another lender.

Step 2: The credit grantor—the mortgage lender, credit card company, or other lender you are working with—requests your credit report from a credit-reporting agency. The credit grantor decides which credit-reporting agency to use, so it’s important to make sure that all your credit reports are up-to-date and accurate with each CRA.

Step 3: The credit grantor compares your credit report and other information on your application against its criteria for extending credit, and then it decides, based on all the information, whether or not to grant you credit. Lenders can have different standards and requirements for granting credit, so you might receive a higher credit limit from one creditor than another, or get turned down for one car loan but get a different one from another lender.

Step 4: The credit grantor informs you of its decision to grant or deny you credit.

Take a look at this graphic illustrating the credit process.

Since Equifax and the other credit-reporting agencies don’t grant or deny credit, we don’t even know what it is in your credit report that may be preventing you from obtaining credit. Each creditor has its own criteria for making credit decisions.

Sometimes the decision to deny you credit isn’t even based directly on the credit report. For instance, you may not have been at your current residence or in your present job long enough. If you have questions about why you were not approved for credit, you should contact the credit grantor who declined you and ask for an explanation.

Under the law, if your request for credit is declined, or if you don’t receive the best possible rate, you’re “declined a benefit,” and the creditor must tell you which information contributed to its decision and which credit agency supplied the report. You should receive a letter or some form of correspondence from the creditor in which it explains its decision.

After you’re “declined a benefit,” you have sixty days to look at a free copy of your credit report from the credit-reporting agency that supplied the report to the creditor.

So while the credit-reporting agencies are not responsible for the terms of your credit, the credit-reporting system makes it easier for you to acquire credit while allowing lenders to offer fair terms that match their risk. This helps you obtain credit cards, instant in-store financing, auto financing, and home loans in only minutes, hours, days, or weeks, not months or years.

Read More:

How To Dispute Credit Report Errors
Four Things College Kids Need To Know About Credit
Four Myths About Your Credit History
Debt Reduction: Why Paying Down Your Credit Card Debt Helps Your Credit Score

2 comments

  1. jeerkaga says:

    U.S. media reported that U.S. President Barack Obama next week with Israeli Prime Minister Benjamin Netanyahu talks to persuade Israel not to strike at Iran’s nuclear facilities inside the coming months.
    Obama will probably be held on the 5th meeting with all the visiting Minister Benjamin Netanyahu. By then, Obama will persuade Netanyahu to wait patiently the impact played by sanctions against Iran and conscious of the danger of a military strike. The Washington Post quoted a government official stated, “We are trying to obtain Israel to try not to create the choice of a military strike” a situation of anonymity.
    The report stated that Israeli leaders made ??it clear that to prevent Iran from acquiring nuclear weapons capability in less time, but the U.S. is worried that Israel’s pre-emptive strike action would trigger a regional war inside the Middle East. Israel had decided to attack on Iran won’t be issued a warning signal towards the United states, the U.S. government can deny conscious of developments in advance, but it also limits the United states to protect its military installations in the Middle East’s capacity.Based on an opinion poll carried out in January by the U.S. media, most Americans believe that financial sanctions and diplomatic way better than military action against Iran. Thus, the United states and Israel for the differences in the way to deal with the Iranian nuclear issue has increased. Israel believes Iran is creating nuclear weapons and military strikes against the window getting closed although the U.S. is no indication that Iran is determined to producenuclear weapons, and also the serious consequences of military operations, like Iran’s retaliation against the Usa, the circumstance within the Middle East instability and the influence from the global economic climate .

  2. jeerkaga says:

    U.S. media reported that U.S. President Barack Obama next week with Israeli Prime Minister Benjamin Netanyahu talks to persuade Israel not to strike at Iran’s nuclear facilities inside the coming months.
    Obama will probably be held on the 5th meeting with all the visiting Minister Benjamin Netanyahu. By then, Obama will persuade Netanyahu to wait patiently the impact played by sanctions against Iran and conscious of the danger of a military strike. The Washington Post quoted a government official stated, “We are trying to obtain Israel to try not to create the choice of a military strike” a situation of anonymity.
    The report stated that Israeli leaders made ??it clear that to prevent Iran from acquiring nuclear weapons capability in less time, but the U.S. is worried that Israel’s pre-emptive strike action would trigger a regional war inside the Middle East. Israel had decided to attack on Iran won’t be issued a warning signal towards the United states, the U.S. government can deny conscious of developments in advance, but it also limits the United states to protect its military installations in the Middle East’s capacity.Based on an opinion poll carried out in January by the U.S. media, most Americans believe that financial sanctions and diplomatic way better than military action against Iran. Thus, the United states and Israel for the differences in the way to deal with the Iranian nuclear issue has increased. Israel believes Iran is creating nuclear weapons and military strikes against the window getting closed although the U.S. is no indication that Iran is determined to producenuclear weapons, and also the serious consequences of military operations, like Iran’s retaliation against the Usa, the circumstance within the Middle East instability and the influence from the global economic climate .


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Credit Archive

Stay Informed Sign up for our FREE Equifax email Newsletter