Consumer credit is any type of credit extended to an ordinary consumer. Credit, broadly defined, is the provision of a resource (typically money) from one party to another, where the first party does not expect to be immediately compensated. Instead, the parties arrange for payment to come at a later date, or over time, in installments. Many people in Smyrna, Georgia deal with 1 type of consumer credit almost every day: credit cards. These tiny pieces of plastic are one of the biggest sources of consumer debt in the United States.
Why can't I Get Credit in Smyrna, Georgia?
If you can't get credit in Smyrna, Georgia, it could be because you have a poor credit score, or simply don't have any credit history. In Smyrna, Georgia, credit scores are created by private corporations called "credit bureaus." These companies collect all the available financial information on a person (such as the amount of credit currently available to them, and its ratio to their debt) and use it to calculate a simple numerical score. This number gives would-be lenders an easy way to assess a person's risk as a borrower. It is not known to many people exactly how your credit score is calculated, because the formulas used by these companies are closely-guarded trade secrets.
Under U.S. law, you have a right to view your own credit report once a year, for free (you can, of course, view it more times than that, but you'll likely have to pay a credit bureau. You should be cautious, however. Many websites claim to offer "free" credit reports, but require a credit card number in order to register. If you do not explicitly cancel your membership (which can usually only be done over the phone, and not online), they will start charging you a monthly fee.
How Can I Improve My Credit Score in Smyrna, Georgia?
The first thing you can do to improve your credit score is to check your report for errors. These companies are not infallible, and sometimes make mistakes in compiling your credit report, including very serious ones. If you find an error, you should report it to the credit bureau, and they will typically fix it. Also, it's good to show that you know how to use credit responsibly. For example, a person in Smyrna with no credit history can quickly build up a good credit rating by getting a credit card, making a few small purchases with it, and then paying the whole balance at the end of each billing cycle.
Credit reports are generally meant to be used by lenders to assess the risk of a prospective borrower. For this reason, how one handles debt is a major factor in one's credit score. Paying all of your debts in a timely manner is a good way to maintain a high credit score.
How Can a Smyrna, Georgia Lawyer Help?
A good lawyer specializing in consumer bankruptcy or other consumer finance issues in Smyrna, Georgia can be instrumental in resolving consumer debt issues. These issues can be complex and frustrating, and a lawyer can make the navigation of them much easier.