The refusal of credit, which is also sometimes called “the rejection of credit” is an incident in which a person or a company is not approved for requested credit line or loan. There are a number of reasons why a line of credit application may be rejected. The most common causes of refusal of loans and credits are lack of credit history and bad credit history. The lack of credit history is a situation where a person has never held a credit or have had a very limited line of credit.
Refused credit can occur if a person with no credit history request a credit line or a person with a limited credit history has applied for a credit line that will make large amounts of money or credit available.
A bad credit history can also lead to the denial of credit. A credit history can be considered poor by a credit institution if one has been delayed on payments, non-payment of loans or have declared bankruptcy.
There are a number of other factors that a credit institution can review, but these are the keys that leads to the denial of credit due to bad credit score. Continue reading Common causes of denial of loans and credits: