One disappointing feeling is you know you have decent credit but get declined for new credit. Here are four reasons why you may have been declined for credit:
Not Enough Credit History
A recent client is new to this country; she speaks English very well and has done great with her new business. This small business owner had only one credit trade line; she was not late but was over her limit. The client paid off the amount owed and we disputed the high balance that was reported which brought her scores down with the credit bureaus. Her credit became impeccable again but there is not enough credit. I suggested she open new credit after she completes her finance with her small business loan.
Too Many Credit Inquiries
A recent client of mine had 700 plus credit scores; she cosigned for a car and didn’t realize the inquiries would affect her credit scores. Unfortunately, this client is an older adult and was taken advantage of by her so called friend and the dealership. It wasn’t necessary for the car dealership to pull that many credit inquiries because my client had impeccable credit. There have been numerous cases in Florida when an older adult gets taken advantage of with their credit.
Utilizing Most of Your Available Credit
Another client of mine did not have bad credit but utilized most of his credit lines. I asked the client why is he maxed out on most of his credit cards, he explained that most of his credit card companies reduced his credit limits for no reason. This client had no late payments with any of his credit cards but was penalized by reducing his credit limit which caused his credit scores to go down. On his credit report, it shows this client utilized more than 90% of his credit limits. To fix this issue, my client immediately reduced his credit card debt by 50% and this simple step increased his credit scores immediately.
Recent Late Payment History
A current client would like to refinance his business; unfortunately, a couple recent late payments on his credit report disqualified him for a small business loan. I asked the small business owner if the late payment claims were correct, he said no. We disputed not only the late payments but also the duplicate accounts that had the poor payment history. This client is completing his credit restoration process and immediately after, he will apply for his small business loan.
For more information on how we can help you fix your business credit and personal credit in Naples FL and Fort Myers FL and Bonita Springs FL please fill out the online contact form about your concerns or give us a call at 855.477-9007. Read what our valued clients have to say about First Pro Capital and Credit Consulting Professionals on our Testimonials page.