Consumer credit is a form 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 instantly compensated. Instead, the parties agree on payment at a later date, or in periodic installments. Many people in Old Orchard Beach, Maine deal with 1 form of consumer credit almost every day: credit cards. These tiny pieces of plastic are one of the largest sources of consumer debt in the United States.

Why can't I Get Credit in Old Orchard Beach, Maine?

If you can't get credit in Old Orchard Beach, Maine, it could be because you have a bad credit score, or simply don't have any credit history. Credit scores in Old Orchard Beach, Maine are compiled by private companies known as "credit bureaus." These companies collect all the available information about a person's finances, and then give them a numerical score, which provides a quick determination of the risk they represent to a lender. The exact formulas that these companies use to generate credit scores are closely-guarded trade secrets.

U.S. law states you are entitled to one credit report per year for free. This will allow you to see your credit score, and any factors that might be hurting it, which can help you improve it in the future. You should be aware, however, that numerous websites offering a "free" credit report will start charging you a monthly fee a month after you register, and then make it very challenging for you to cancel your membership, requiring you to do so over the phone rather than online. They also may only tell you about this fee in the fine print.a

How Can I Improve My Credit Score in Old Orchard Beach, Maine?

To improve your credit score, you can do a few fairly simple things. First, you should check your credit report for mistakes, and report them to the credit bureau so they can be corrected. Also, it's good to show that you know how to use credit responsibly. For example, a person in Old Orchard Beach with no credit history can rapidly build up a good credit rating by getting a credit card, making a few small purchases with it, and then paying the entire balance at the end of each billing cycle.

Credit reports are a tool for lenders to determine how risky it is to loan money to someone. Therefore, showing that you consistently pay your debts in a timely manner is the best way to maintain a good score.

How Can a Old Orchard Beach, Maine Lawyer Help?

A good attorney specializing in consumer bankruptcy or other consumer finance issues in Old Orchard Beach, Maine can be instrumental in resolving consumer debt concerns. These issues can be complex and frustrating, and an attorney can make the navigation of them much easier.