Credit, broadly defined, is the provision of money on the assumption that compensation for it will come later, or over time. Consumer credit is simply credit extended to individuals in order to purchase consumer goods or services. Many people in Woodcliff Lake, New Jersey deal with 1 type of consumer credit almost every day: credit cards. These little pieces of plastic are one of the biggest sources of consumer debt in the United States.
Why can't I Get Credit in Woodcliff Lake, New Jersey?
The most likely explanation as to why a Woodcliff Lake, New Jersey bank won't give you a credit card or loan is that you have bad credit. In Woodcliff Lake, New Jersey, credit reports are prepared by private companies that have access to a great deal of financial information about almost anyone who has a Social Security Number. These companies are called "credit bureaus." They take relevant information, such as one's credit-to-debt ratio, and past-due payments, and use complex mathematical equations to generate a numerical score. Relatively few people know what these exact formulas are, since they are well-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 affirmatively 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 Woodcliff Lake, New Jersey?
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 usually fix it. Also, it's good to show that you know how to use credit responsibly. For example, a person in Woodcliff Lake 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 primarily 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 Woodcliff Lake, New Jersey Lawyer Help?
A good Lawyer specializing in consumer bankruptcy or other consumer finance issues in Woodcliff Lake, New Jersey 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.