U.S. consumers increased their borrowing in February by 3.8 percent, or $7.6 billion, according to the Federal Reserve.
The rise in credit use was heavily dependent on student loans and auto loans, which increased 7.7 percent during the month. Credit card borrowing, however, fell 4.1 percent, which may indicate that some consumers are maintaining similar financial management principles as those they practiced during the recession. During that period, consumers worked to pay down more of their debt and cut their credit card use.
Some consumers who may be interested in securing a new car loan may get turned down by an auto dealer because of a low credit score, even if they've always handled credit responsibly. Individuals who are denied a loan because of information in their credit report are eligible to receive a free copy of the report the lender used in its assessment. It's important for these individuals to review their report, as an error on their document may be the underlying reason they were denied.
Like all of us, merchants and credit companies make mistakes. In some cases they may misreport the standing of an account, causing an individual to endure credit damage. Oftentimes, victims of a credit reporting error may benefit from contacting a credit repair attorney who can work with the credit bureaus to remove the unfair blemish from their records.