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New Website – ReasonCode.org – Explains Why You Were Denied Credit And What To Do


When a consumer is denied credit, there is typically a short explanation – often confusing – about why credit was denied. Sometimes these explanations seem to conflict. For example, one reason creditors will use is “too many auto accounts with a severe delinquency,” while another reason could be “too few auto accounts with no severe delinquency.” Consumers are left baffled as to the real reason credit was denied.

VantageScore, a rival to FICO, is attempting to clarify this. You can now type in the short explanation that was given for the credit denial and receive a longer explanation of what exactly the reason is.

For example, you may receive the reason “You do not have enough open real estate accounts.” This is explained by the ReasonCode website as meaning “A real estate loan can be a first mortgage, a home equity loan, or home equity line of credit. The VantageScore credit score model relies on information in your credit files at the three national credit reporting companies (Equifax, Experian and TransUnion) to generate your score. A mix of different types of open and active credit accounts, including real estate accounts, can have a positive impact on your credit score.”

Many of the ReasonCode explanations also work for creditors who use FICO, although they are not always identical.

Although this new development does not provide the complete level explanation that consumers may require to understand the complexities of credit scoring (which is still treated as a confidential business secret by the credit bureaus), it is a first step toward helping people understand their credit reports and credit scores.

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Culik Law is a Massachusetts Attorney / Law Firm. The posts on Culik Law’s blog are not intended as legal advice. If you have questions about your particular situation, CONTACT CULIK LAW for a Free Consultation.

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