When your request for credit gets refused, it’s not always all clear. In some instances, you get a green light, but you get different conditions... and usually some that aren’t that great for you like higher interest rates. Sometimes you can apply to some very attractive credit card offers, only to receive an approval for one with a much higher interest rate. That’s just how the game works sometimes.
You can get your terms changed
The laws and rules have changed in some regards and lenders can make some changes according to how your credit report stats are showing up. You show be notified about how the changes are affecting you.
A few years ago, the rules changed and it's now mandatory that you receive some information about the modification of the term you received on your approved credit. The logic for this goes according to risk and there's simply nothing you can do about it but improve your credit repair situation to really get the offer you applied for the next time you test your luck. This is perfect proof that your credit score can follow you everywhere you go. That's one more reason to get your credit report and look at the information yourself, and if you've read our other articles you know that you can do so online or even for free. Even if you receive some information about your credit situation after the changes in terms, according to the new law, you won't get your credit scores and detailed stats on the notice, so the credit report is still an essential tool for credit repair.
Two types of notifications
The two notifications you can receive from lenders are the risk-based pricing notice and the credit score disclosure notice. The first one describes how your credit report tells you how your report affected the decision and gives instructions on how to obtain and challenge decisions on a credit report, while the second one talks about your credit score, making some statistical comparisons that you can use to evaluate just how bad your credit repair situation is.
The FICO score is one you can get for free in some instances. There's even a subscription you can try. However, you will have to cancel that subscription before a week is up if you want to really get that “free” score.
Overall, FICO and lenders are working together to ensure that you're getting as much information as possible when your credit is refused or the terms modified. ScoreInfo.org is also a good resource. When you receive these notifications we've outlined, take the time to take in every detail and watch how your credit repair situation is currently affecting your credit requests. A credit card offer might be attractive, but you could be getting some surprises if your credit repair situation isn't good enough for the offer to apply to you. Of course, you can avoid such surprises by ordering your credit report and getting all the information in front of you. The explanation provided in those notices will then be less surprising to you.