Failing a credit check can often be a nerve-racking experience when you are going in to apply for financial products. Whether you’re hoping to get access to some extra finances to complete a home renovation or you wanted to access a new credit card to go on a trip, failing a credit check often feels like you’ve taken a massive step backward.
Why Credit Checks Exist
Credit checks are designed to help us establish affordability in our lives. Taking a loan and not paying it back can be extremely detrimental both for the creditor as well as the debtor. It’s likely that you’ve had to perform a credit check if you’ve ever gotten a phone or started paying bills at a utility company. A failed credit check for utilities, renting a property, or qualifying for a loan are all possible, but there are some solutions.
If you fail a credit check while trying to rent an apartment it’s important to keep in mind that this is one of the most common types of credit checks to fail. There may be some solutions that could help you still rent such as negotiating an initial upfront rental payment or using a guarantor who would be willing to pay your rent if you are unable to make the payments. Here are some of the most common reasons why you may fail a credit check.
- You have very little credit history and no record of good or bad credit.
- There’s no way to confirm your identity or previous addresses. There’s no history or way to contact you.
- You have an ongoing history of credit problems.
- You’ve made a series of mistakes and applications such as not listing your previous addresses correctly.
- Your credit report is connected to somebody else’s negative credit history. If you shared a bank account with an ex or you were previously married, there’s a chance that their credit history could be negatively affecting yours.
If you fail a credit check it’s important to find out more about why you may have failed. Checking your credit report and discussing more on the options you might have for financial products in the future can help you find adequate solutions after you failed a credit check.
This post was written by Kristian D’An, owner of Lux Credit LLC and CCA board certified credit repair specialist. Lux Credit offers credit repair services for those looking to improve their credit! Click here for more information.
