Denial Of Credit

What is denial of credit?

Denial of credit is nothing but your application being rejected by the party from whom you were expecting to get a loan.

The reasons of denial of credit

The credit denial generally happens as a result of either of these perceived situations

  • The lender is in the impression that the condition of the borrower is not such that he or she will be able to return the amount that has been borrowed
  • The borrower has a blotched credit history that gives an idea of how he or she has failed to return the borrowed amount in the past
  • Also, if the borrower has no credit history of any kind, the lender may refuse to lend the money to the borrower
  • The last reason for the denial of credit can be an incomplete application that does not have all the required fields completely filled out.

Though the lenders can any time refuse to lend money to a borrower, the Equal Credit Opportunity Act has made it mandatory for all the lenders to make it clear to the borrowers the reason of refusal of the credit. If the borrower feels that the denial of credit is based on wrong reasons or the reasons that are not applicable in the present scenario they may even ask to get the copy of their credit report reviewed. The term denial of credit is same as credit decline or credit rejection and can be used interchangeably.

Denial Of Credit

Denial Of Credit

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Sample Template Preview


Date: _______/_____/______

Dear ________________________

Your application for leasing property located at  _____________________________has been denied.

One or more of the reasons for the denial of you application may be found in:
Information contained in a consumer credit report obtained from: (See List Below)
A consumer credit report containing information insufficient to our need was obtained from: (See List Below)
The fact that the consumer reporting agency contacted was unable to supply any information about you. (See List)
Information was received from a person or company other than a consumer reporting agency. You have a right to make a written request to within 60 days of receiving this letter for a disclosure of the nature of this information.

Pursuant to federal law, we are prohibited from disclosing the source of the report

When a credit report is used in making the decision, Section 615b of the Fair Credit Reporting Act requires us to tell you where we obtained that report. The consumer reporting agency that did the credit check on you was:

That company may also have obtained information on you form one or more of the consumer reporting agencies whose names, addresses and phone numbers are listed below. They and the other agencies only provide information about your credit history. They took no part in making the decision, nor can they explain why the decision was made. A CHECK MARK INDICATES THE AGENCY PROVIDED A REPORT ON YOU.


– Trans Union Consumer Relations, P. O. Box 1000, 2 Baldwin Place, Chester, PA 19022 800-888-4213
– Experian (TRW) Consumer Assistance, P. O. Box 949, Allen, TX 75002 800-682-7654
– CBI/Equifax Credit Information Service, P. O. Box 740241, Atlanta, GA 30374-2041 800-685-1111

You have certain rights under federal law to get a copy of your report, dispute its accuracy and insert a consumer statement. If you believe your file contains errors, is inaccurate or incomplete call the consumer reporting agency at their toll-free number, or write to them using the information listed above for disclosure. The disclosure can be made orally, in writing , or electronically. Further…

You have a right during the 60 day period that starts _____/____/_____to receive a free copy of your consumer report from the consumer reporting agency whose name is checked off above.

You have a right to dispute the accuracy or completeness of any information contained in your consumer report, as furnished by the consumer reporting agency whose name is checked off above.

You have a right to put into your file a consumer statement up to 100 words in length to explain items in your file. Trained personnel are available to help you with the consumer statement.

You may have additional rights under the credit reporting or consumer protection laws of your state. Contact your state or local consumer protection agency or a state Attorney General’s office.

You should have the following information available to promptly obtain your request:

A copy of this denial notice
Your full name and spelling
Your social security number
Your complete mailing address and zip code
Your daytime phone number with area code
Name of your employer/company, if applicable
Your drivers license number and state of issue (for Bad Check Only)