Picture this scenario: You're at a used car showroom, you have picked out your dream car, you walk with the salesman over to the desk where he begins to process your application for a used car loan.

As he talks on the phone, more and more people are standing around waiting to talk to the salesman. He finally comes off the phone and breaks the news to you, your credit application has been refused. You can't get your car, your embarrassed in front of the salesman and the customers that are in the showroom, not a very nice experience for anyone to go through.

Unfortunately, this scenario is becoming more and more popular amongst Americans today. We are suffering as a result of the economic climate, but more so the ones who require a little credit.

What is reassuring though is that there are certain laid out steps to progress through that can quickly remedy this situation. Firstly, you must get yourself a free credit report. This is absolutely imperative as we need to know exactly what the creditors are seeing when you are making your application.

If there's anything in there that shouldn't be there, your next action should be to raise an action against this information by writing to the company and clearly explaining what your concerns are about what is stored on your credit file. With that sorted out, you must liaise with the credit report agencies about what has happened and explain the actions that you have taken, and don't be afraid to ask them what else you can do.

Without the free credit report, you would never have understood why you were continuously refused for a bad credit loan. Since you received it however, you can now take the appropriate actions to ensure your next application is a successful one.