Consumer credit is a type of loan extended to ordinary consumers to buy consumer goods. Credit, broadly defined, is the provision of money from one entity to another, where the lender does not expect to be immediately compensated. Instead, the parties agree on payment at a later date, or in periodic installments. Many people in Norton, Massachusetts deal with 1 type of consumer credit almost every day: credit cards. These small pieces of plastic are one of the biggest sources of consumer debt in the United States.
Why can't I Get Credit in Norton, Massachusetts?
The most likely explanation as to why a Norton, Massachusetts bank won't give you a credit card or loan is that you have bad credit. In Norton, Massachusetts, credit scores are created by private corporations called "credit bureaus." These companies gather 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.
In the U.S., you have a legal right to view your credit report for free, once per year. This is a good opportunity to perform a financial check-up, and see if there are any errors on your report which need to be corrected. While some third-party companies will give you a free credit report through their website, you should be aware that many of them (without making this clear up-front) will begin charging a monthly fee afterwards, in exchange for continued access. If you just wanted the one free report, you can opt out of this, but you normally have to do so over the phone, and can't do it online.
How Can I Improve My Credit Score in Norton, Massachusetts?
To improve your credit, there are various things you can do. First of all, you should report any errors you see on your credit report to the credit bureau. These companies sometimes make mistakes, and some of them can seriously damage your credit score. It's also good to show that you can use credit responsibly. For example, someone with no credit history in Norton might get a credit card, and use it for a few modest purchases each month, and then pay down the entire balance at the end of the month. This is a good way to quickly obtain a good credit score.
Because credit reports are usually meant to make it easier for potential lenders to assess your risk as a borrower, showing that you pay back your debts in a timely manner can go a long way in creating a good credit score.
How Can a Norton, Massachusetts Lawyer Help?
A good Norton, Massachusetts Lawyer knowledgeable in consumer finance issues can help you address the more complicated problems that might arise in this area, such as a credit bureau's refusal to remove an error from a credit report, identity theft, or a third party attempting to maliciously harm your credit score.