2 Options In Dealing With Consumer Credit Problems

When talking about consumer credit problems, there are two particular problems that it always boils down to. Either you have no credit at all, and thus can’t find a way to take out a credit line and build your credit. Or, you have a poor credit history. Below are a couple of methods for dealing with both of these issues.

Building Credit

Good credit isn’t built overnight, whether you currently have no credit or bad credit. While many personal banking lenders and credit card companies will refuse to deal with you under regular circumstances, many times you can reach an agreement for a secured credit card or secured credit line. For credit cards, this usually means a small deposit equivalent to the credit card’s limit. This way, if you default on payments, they aren’t losing out on money. However, if you are good about payments, you will eventually build your credit and be allowed to switch to an unsecured credit card, at which case you’ll get your deposit back. Secured credit lines work in a similar manner, except you put up current assets as collateral (such as a house, vehicle, etc.) to get the credit line until you can pay it off.

Dealing with Your Credit Report


In the case of bad credit, you should always review your credit report. Take note of all disputes that are dragging your credit report down, and compose a consumer credit dispute letter to be mailed to the credit bureaus. By law, the credit bureaus have to contact the original consumer credit company for proof of credit damaging accounts. If proof is not supplied within 30 days, the bad credit is erased from your credit history. Be sure to limit your dispute letters to dealing with 1 or 2 credit issues at a time, or they will be labeled as “frivolous” and nothing will be done.

 



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