Credit Denial

AAA

DEFINITION of 'Credit Denial'

The rejection of a credit application by the prospective lender. Usually credit denial comes as a result of the borrower's perceived inability to pay back the loan. This is often due to previous blemishes on the borrower's credit history, but it can also stem from an incomplete credit application or lack of any kind of borrowing history.

INVESTOPEDIA EXPLAINS 'Credit Denial'

The Equal Credit Opportunity Act mandates that lenders who deny credit to their applicants must state their reason for the rejection. Borrowers who are rejected because of adverse reports from other creditors have the right to review a copy of their credit report. This term is synonymous with credit decline or credit rejection.

RELATED TERMS
  1. Sovereign Credit Rating

    The credit rating of a country or sovereign entity. Sovereign ...
  2. Credit History

    A record of a consumer's ability to repay debts and demonstrated ...
  3. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Credit Card

    A card issued by a financial company giving the holder an option ...
  6. Charge Card

    A card that charges no interest but requires the user to pay ...
Related Articles
  1. How Much Debt Can You Handle?
    Budgeting

    How Much Debt Can You Handle?

  2. Credit, Debit And Charge: Sizing Up ...
    Credit & Loans

    Credit, Debit And Charge: Sizing Up ...

  3. Digging Out Of Personal Debt
    Credit & Loans

    Digging Out Of Personal Debt

  4. Top 7 Most Common Financial Mistakes
    Options & Futures

    Top 7 Most Common Financial Mistakes

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center