Your credit history can determine if you can get a loan, and even where you live or work. Credit scores can determine how much you pay to borrow money for a car or house.

Below are some tips on how to deal with 3 common credit issues from a blog by Liane Weissenberger on the Consumer Financial Protection Bureau website.

 

1. Lack of enough credit history

Many people may not know that having no credit history, or a limited credit history, can create issues similar to having negative information in your credit history.

What you can do:

There are a number of products considered helpful in establishing or rebuilding credit histories, and they provide you with the opportunity to practice making on-time payments that are reported to the credit reporting companies. These may include secured credit cards, credit builder loans, or retail store credit cards.

 

2. Denied credit application

If you’ve been denied an application for a loan or line of credit, there are steps you can take to improve your credit score or dispute inaccurate information on your credit report.

What you can do:

• Find out why your application was denied. If a lender rejects your application, they are required to tell you why your application was rejected.
• Review your credit reports. Make sure the information in your credit reports is accurate. If you find errors, take steps to correct them.
• Improve your credit history with a few best practices, such as paying your bills on time and limiting your credit use to no more than a third of your credit limit.

 

3. Fraud or identity theft

Identity theft occurs when someone uses your name, Social Security number, date of birth, or other identifying information, without authority, to commit fraud.

What you can do:

• Review your credit reports each year  to make sure they contain only information about you
• Immediately report any inaccurate or suspicious information on your credit reports
• Place a fraud alert or security freeze on your credit reports

 

Next steps

Building or rebuilding your credit will take time and planning. The steps above can guide you on your journey.

To learn more about fixing your credit issues, read the full blog here.