CREDIT SCORES

By Casey Bond

One of the factors that can impact your credit score negatively is too many credit inquiries. The more credit checks performed against you, such as when you apply for credit card offers or loans, the likelier it is your credit score will drop.

You may not think of your credit score as treasure, but it is. Good credit is the foundation to being able to afford the things you want — a home, a car and loans for pretty much everything else.

Those three little numbers determine a lot of your life and you should always be working toward getting closer to the elusive 800. To help you get there, we gave you a map of how to find your own credit score treasure.

Check out the infographic below to find out!

As a result of lending standards getting a tad bit tighter, the Department of Housing and Urban Development announced that it now intends to require borrowers to have scores of at least 500 to qualify for an FHA-insured mortgage loan. This is the first time that the agency will have a minimum score requirement.

While this change could affect a handful of prospective borrowers, HUD says that it shouldn’t make a significant difference since most loans issued in the second quarter of 2010 were issued to those with scores above 620, less than 1 percent went to those with scores below 580 and none were issued to those with scores below 500 (CNN Money).

FICO Inc. recently released its latest analysis of credit reports to reveal that, as of April 2010, 25.5 percent – or nearly 43.4 million Americans – have credit scores that rest at 599 or lower. Representing one-fourth of the population, these numbers show that more Americans have scores that could prevent them from getting credit cards, auto loans, affordable mortgage interest rates and more.

By Casey Bond

As you know, your credit rating is a very important factor in your overall financial well-being. It determines everything from your ability to obtain the best credit card interest rates to whether or not an employer will  hire you. At some point in your life, at least one person will run a credit check on you and it will most likely be a potential employer or lender.

The Second Quarter 2010 FreeScore.com Consumer Credit Score Awareness Study has revealed that U.S. consumers with lower incomes and less education seem to showcase a significant lack of credit score awareness. The study took a poll of 1,000 Americans ages 18 and over and found that fewer individuals with the lowest incomes ($35k or lower) knew what a credit score was (around 67 percent compared to 70 percent of individuals in the $35k to $49.9k bracket).

The report also found that those with less education knew less about their credit scores. (Trading Markets)

Everyone knows that their credit history impacts their credit score, but let’s explore some of the lesser known numbers that make up your overall score that will be within the range of 300 to 850.

Payment History (35% of your score)

Currently there are millions of unemployed Americans looking for work. The job market is incredibly tight and employers are demanding perfection out of their applicant pools.

Aside from the basic job seeking skill set required for the process, candidates are under greater scrutiny. The checking of applicants credit scores is become more common and can limit your chances of finding gainful employment.

The Federal Trade Commission has officially made a commitment to crack down on companies that that offer misleading advertising regarding free credit reports. According to reports, the FTC will now require companies to clearly state in their advertising that the only site authorized to offer free credit reports is AnnualCreditReport.com.

Credit Card Bill of Rights Changes the Game

The economic recession has caused millions of people to lose their jobs. With historic unemployment numbers crippling the nation, the fact is that finding a job is tougher then usual. Not only do candidates need to ensure that their resume is flawless and their interview skills are dazzling, job seekers may also need to ensure the health of their credit history.

Credit Checks and Employers