Broadly defined, consumer credit is any type of loan provided to individuals in order to buy consumer goods. Many people in Mount Carmel, Pennsylvania deal with consumer credit every day in the form of credit cards. In fact, credit cards are one of the largest sources of individual debt in the U.S.
Why can't I Get Credit in Mount Carmel, Pennsylvania?
If you're having trouble getting credit in Mount Carmel, Pennsylvania the most likely explanation is that you have no credit history, or a poor credit score. Credit scores in Mount Carmel, Pennsylvania are compiled by private companies known as "credit bureaus." These companies collect all the available information about a person's finances, and then assign them a numerical score, which provides a quick assessment of the risk they represent to a lender. The exact formulas that these companies use to generate credit scores are closely-guarded trade secrets.
Under U.S. law, you are legally entitled to one free credit report per year. This allows you to perform a simple financial check-up, to see what's hurting your credit, and to report any false information contained in your report. There are many websites that provide easy access to this information, but most of them require registration with a credit card. Once you view your free report, they will begin charging you a monthly fee unless you opt out. Some of them make this challenging by requiring that you cancel your membership by phone, rather than letting you do it online.
How Can I Improve My Credit Score in Mount Carmel, Pennsylvania?
To improve your credit rating, you can do a few relatively simple things. First, you should check your credit report for errors, and report them to the credit bureau so they can be corrected. Also, you should show that you are willing to use credit, but able to do so responsibly. For example, using a credit card for a few inexpensive purchases per week in Mount Carmel, then paying the entire balance at the end of the month.
Credit reports are a tool for lenders to assess how risky it is to loan money to someone. Therefore, showing that you routinely pay your debts in a timely manner is the best way to maintain a good score.
How Can a Mount Carmel, Pennsylvania Lawyer Help?
A good Mount Carmel, Pennsylvania 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.