How to Repair Credit After Being Denied for Loans or Credit Cards

Getting denied for a loan or credit card stings. It can throw off your plans for a car, a home, or even a simple credit line. But here's the thing—denial doesn't mean defeat. In fact, it's often the wake-up call you need to start taking control of your credit.

Step 1: Understand Why You Were Denied

Every creditor must send you an adverse action notice explaining why you were denied. Common reasons include high credit utilization, recent late payments, too many inquiries, or negative items like collections or charge-offs.

Step 2: Get Your Free Credit Reports

Visit AnnualCreditReport.com to get your free reports from all three bureaus (Experian, Equifax, TransUnion). Review them carefully for errors, inaccuracies, or items you don't recognize.

Step 3: Dispute Inaccurate Items

If you find errors, dispute them immediately. Use OriumAI to generate FCRA-compliant dispute letters that cite specific Metro-2® violations and legal statutes. This gives you the strongest chance of getting negative items removed.

Step 4: Pay Down High Balances

Credit utilization (the percentage of available credit you're using) accounts for 30% of your FICO score. Aim to keep utilization below 30%, ideally below 10%.

Step 5: Avoid New Applications

Each credit application creates a hard inquiry that can lower your score by 5-10 points. Wait at least 6 months before applying again, and focus on improving your credit during this time.

Conclusion

Credit repair takes time, but with the right strategy and tools like OriumAI, you can bounce back stronger than ever. Start your journey today.