What is Credit?

Credit is an arrangement to borrow money now with a promise to repay it later, often with interest. Your credit score, however, is determined by your credit history and determines your credit risk, an indication as to how likely you are to repay your loans. Potential lenders use the credit score to determine whether they want to issue you credit, such as a mortgage, credit card, auto loan, etc. Your credit report is issued by credit bureaus (Equifax, Experian, TransUnion, Innovis) that shows your credit history (lines of credit you have open). Remember to check your reports at least once a year to make sure there are no errors. This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns.

Credit 101

Credit can be a confusing concept. CAP wants to make it simple for you! This post is a guide to credit, credit bureaus, credit reports and more. What is credit? Your “credit” refers to your ability to borrow money and how much you can borrow. Your “credit score” is determined by your credit history, and… Continue reading Credit 101

Protect Your Credit: Get a Free Freeze

Under the Economic Growth, Regulatory Relief and Consumer Protection Act, credit freezes are free of charge to anybody, regardless of whether or not they are victims of identity theft. This new law requires credit-reporting agencies to eliminate the cost of credit freezes, credit unfreezes (thaws) and yearlong fraud alerts to consumers. Website Required:  The three… Continue reading Protect Your Credit: Get a Free Freeze