Over the past few years, credit card lenders have become increasingly frugal with borrowers due to an increase in late payments and defaults on consumer accounts.
Recent research by TowerGroup suggests credit card companies have cut their lending by $1.5 million since the beginning of the recession. As a result, many issuers have heightened qualifications for new card options.
This means many borrowers with less than perfect credit may not be able to qualify for new credit cards and other forms of financing, ABC News reports. This is because lenders often look at a consumer's credit report prior to approving an application, and too many black marks may indicate to lenders that a consumer is a risk for future delinquency and default.
However, there are a number of steps individuals may take to repair bad credit. One way to fix credit is to carefully examine a credit report for questionable items.
Individuals who find inappropriate or problematic claims may benefit from investigating them with the help of a credit lawyer. A successful dispute may mean big credit score improvements for the consumer, who then may be a more attractive credit applicant.