 TITLE: What Is an Adverse Action Letter? CONTENT: How to Improve Credit and Reduce the Chance of Future Denial\n------------------------------------------------------------\nIf your application for credit was denied for a specific reason, pay attention to that factor going forward and be sure to remedy it before you reapply. Denials based on your credit score or lack of credit history are addressable if you work on building your credit score.\nThis process can take time, but it can improve your chances of getting approved for credit in the future. Be sure to:\n*   **Pay your bills on time.** If you're behind on any of your payments, work on getting current as quickly as possible. Then make it a goal to pay on time every month going forward. While you can't erase the negative influence of past-due payments, positive payment history going forward can help reduce the sting.\n*   **Pay down credit cards.** How much you owe is an important factor in your credit score, especially when it comes to credit cards. Some experts recommend keeping your card balances below 30% of your available credit, but the lower, the better.\n*   **Avoid unnecessary credit applications.** Credit inquiries don't have a significant impact on your credit score on their own, but if you apply for credit multiple times in a short period, it can have a compounding effect. So try to avoid applying for credit unless you absolutely need it.\n*   **Get credit for utility and phone payments.** If you make your utility and phone payments on time, Experian Boost™† can allow you to add that information to your credit file and reap the benefits with your credit score. Simply connect your bank accounts and identify the payments you want to have added to your Experian credit file, and you'll see an updated FICO® Score immediately.\nAlso, keep in mind that while it's important to work on improving your credit, that doesn't necessarily mean you can't get approved for credit in the meantime.\nThere are some lenders that specialize in working with people with less-than-stellar credit. While their interest rates and other features may not be as favorable as prime lenders, they may still be able to get you the credit you need. Consider these options only if you absolutely need credit now, and can't wait to work on your credit situation.\nIf, however, you do have some time to improve your credit score, focus on that now, and it could save you a lot of money in interest in the long run. END