If your loan is turned down because of a poor credit report, you may request a free copy of the report from the credit report company, which will be identified in a notice from the lender. Examine the credit report carefully to see if it is up to date and accurate. The credit bureau must correct any errors in the report. If there are unsettled disputes over certain accounts, it must also include your side of the argument in the report. Even if the name on the report seems to be you, make sure all of the accounts and references apply to you.
Many people have the same name and improper recording of data occurs.
If the adverse items on the report occurred because of illness, marital problems, job layoff or other temporary circumstances and were confined to a particular period of time, you should have provided the lender with a written explanation at the time the loan application was taken or at some other point in the process. If you didn't do it then, do it now. Assuming there has been sufficient time since the problems occurred for you to regain financial stability and demonstrate prompt payment of your obligations, there is a good chance the lender will reconsider the loan request. Many lenders look for one year's clean payment record to offset past credit problems. If the credit report is accurate and you have a questionable credit history, you need to start repaying outstanding balances on time in order to re-establish an acceptable record.