Lending Deregulation Is Here
Have you ever tried to climb a tree with no branches or a ladder with the first 10 rungs missing? It would be tough right? If you have troubled credit, trying to reestablish your credit in the current banking environment is a similar proposition. How can you establish or reestablish credit if nobody will give you a loan? This ultimately, was one of the unforeseen side effects of the banking rules implemented as part of the Dodd-Frank Act. Admittedly, after the housing crisis in 2008 brought the word to its knees, the seemingly draconian regulations implemented as part of the Dodd-Frank Act seemed necessary. Ten years later, however, we are starting to recognize that big banks have gotten bigger, lending has become unreasonably complex and the regulations implemented to protect the consumer have had unforeseen consequences.
What This Means – In a Nutshell
Firstly, don’t expect the deregulations to have an overnight effect. After, these changes ripple through the banking system, however, you can expect credit to be a little bit easier to come by. Take the next 6 months to get your credit report and credit score in order. Check for any mistakes and dispute anything that seems inaccurate. If you are like many, struggling to get credit everywhere you look, a ray of sunshine might just finally be on the horizon.