Credit Cards For Less Than Perfect Credit

There are several ways to fight a credit denial.

The economy may be improving, but many consumers may still find it difficult to get any kind of loan.

However, there are a number of ways for those seeking a loan to get one even after they get rejected, according to CNN Money. If, for example, a consumer is denied for a credit card, the company that rejected them usually sends a letter explaining the denial. If one of the reasons was a low credit score, the consumer is entitled to a free credit report within 60 days.

The consumer can also dispute what they feel are inaccuracies at) the credit bureaus with a letter, and the bureau has a month to investigate the claim, the article said. When the mistake is corrected, the consumer can request that the revised credit report be re-sent to any agency that recently pulled their report.

Or consumers can simply pay down their debt. If the reason for late payments is a financial hardship, like a layoff or a divorce, many creditors may allow the consumer to arrange a payment plan or even get a lower annual percentage rate. The article said that those with bad credit should consider opening a secured credit card, which works like a regular card but requires a deposit that acts as a credit limit. Such cards can raise a credit score.

The article also recommends consumers be vigilant with their credit card statements and verify that there are no unknown charges, new or increased fees or shorter grace periods.

A recent article in U.S. News and World Report said that even staying debt-free cannot improve a credit score. In fact, consumers can only get a perfect credit score by continually getting and paying off debt to prove they can manage loans responsibly.