There are endless possibilities for credit declination, but here are the six most common reasons according to the credit bureaus:

1. Delinquent credit obligations: Late payments, bad debts, or legal judgments against you obviously make you a higher risk credit customer, and lower your chances for credit.

2. Incomplete credit application: If you omit important information on your credit application or make other errors on your application, there may be a significant discrepancy between your application and your credit file, which can hurt your chances for credit. Creditors want a consistency of information.

3. Excessive ‘inquiries’: Every creditor inquiry is noted on your credit record. Inquiries happen whenever you apply for credit and the prospective creditor requests information about you from the credit bureau, and when you request your own credit report, it also generates an inquiry, but it is not an adverse entry on your record. As few as four credit inquiries within a six month period may be viewed as excessive credit activity, and prospective creditors may then presume that you are trying unsuccessfully to find credit elsewhere.

4. Errors in your file: Errors arise. Unfortunately, even simple clerical mistakes (confusing your name with someone with a similar name or recent address change, etc.) can create credit problems. Because credit bureaus handle millions of files, there is always that possibility of error. Your goal is to find and correct these errors, which means that you must periodically and carefully review your credit file for accuracy, and then take whatever steps are necessary to correct those errors.

5. Insufficient credit history: Your ‘credit history’ may also be too scanty for the type or amount of credit you request. You must then further build your credit to qualify for the credit-line you require.

6. Tax liens, bankruptcy, judgments, foreclosures or repossessions are all ‘red flags’ that automatically damage credit, and sometimes eliminate the possibility of obtaining any significant credit.