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Foil 6 common consumer credit complaints

Predatory perpetrators
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The offense: predatory lending. People who can't get credit are particularly susceptible to becoming victims of easy credit schemes that carry astronomical hidden costs.

The defense: Predators win when you don't do your homework. So check out the options when shopping for auto or home loans. To protect your credit score, it's best to make these multiple applications within 14 days of each other.

Steer clear of auto title loans and payday loans. Standaert of the Center for Responsible Lending says a few states limit interest rates on these types of debt, but most don't. As a result, they can sometimes cost you up to four times what you initially borrowed. Check out credit unions, finance companies and even charitable organizations for alternatives.

With prepaid cards, know exactly what the post-purchase costs are, says Standaert. Some have reasonable fees, but others "work very similar to the structure of a payday loan," she says.


 

 

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