What is on my credit file that may keep me from obtaining credit?

Each credit provider has established criteria for making credit decisions. Your credit may appear to be perfect, but having too much credit or too many outstanding balances are examples of why your request for credit might be declined. Sometimes the decision is not even based directly on the credit file. For instance, you may not have been at your current residence or in your present job long enough. If you have any questions about why you were not approved for credit, you may want to contact the credit grantor who turned you down and ask them for an explanation.

Main information that is obtained from you credit file is the first time you have applied for credit and how long your file has been established. Lenders tend to be cautious with applicants who have a recently opened file. Lenders also look at a number of enquires stated on your credit file. Recent number of enquiries may affect you obtaining credit, the large the amount of enquiries the more hesitant the lender becomes. However, most importantly the credit file reveals if you have any current or past defaults, court judgments and bankruptcies.

How can I improve my score?

• Pay your bills on time.
• Keep balances low on credit cards.
• Limit your credit accounts to what you really need. Accounts that are no longer needed should be formally cancelled since zero balance accounts can still count against you.
• Check that your credit report information is accurate.
• Be conservative in applying for credit and make sure that your credit is only checked when necessary.