CREDIT » Credit Scores & Reports

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!

Perusing the internet and building online social networks used to be activities reserved for computer nerds and technologically savvy teens. Now, even Grandma has a Facebook profile. The entire population is online and everyone from marketing experts to creditors know it. What used to come way of billboards, TV commercials and magazine pages is now streamed through your inbox and splashed across your newsfeed, and your credit may be suffering.

One of the easiest ways to lower your credit score is by carrying a high level of debt. Subscribing to the e-mail lists and social media fan pages of your favorite establishments may help you stay on top of the latest trends and deals, but also encourages you to spend more than you probably should. Plus, it’s not just your friends viewing your profile and tracking your online activity. You may be surprised by the type of information you send out when you log in.

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).

A type of con designed to skim your credit card number, PIN and other information when you swipe is growing in popularity. The con, which is called shimming, allows thieves to skim your information by inserting a device called a shim, a very thin flexible circuit board, through the card slot of an ATM.

The shim will then stick to the internal contacts that read the card and compromise your personal information. So far, using the shim has resulted in the loss of billions of dollars annually for both cardholders and financial institutions. Using secure ATMs and being leery of suspicious machines could help stop it from happening to you (Network World).

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.

A report released on Tuesday by Standard & Poor’s shows that consumer credit lines showed drops in defaults in the month of May. Bank card loan defaults dropped from 9.1 to 8.9 percent. First and second mortgages dropped from 7.2 to 3.4 percent and 2.9 to 2.4 percent, respectively. And defaults on auto loans dropped to 1.8 percent, lightening 10 basis points.

The report notes that the reason we’re seeing a decline in defaults is because consumers are making a concerted effort to bring down their debt levels after struggling through the financial crisis. (Market Watch)

A free checking account is one of the first tools of finance most individuals start managing in order to build some credit and qualify for low loan rates. However, unlike obtaining a credit card or a loan, a checking account allows you to directly manage cash you deposit, withdraw and budget yourself.

Instead of using borrowed money paid back in monthly installments, bank checking account funds are accessed with a debit card that spends money you already have on deposit. A checking account gives you easy access to your cash, along with checks and a register to track the balance.

As we approach the time of year when high school and college seniors are anxiously awaiting graduation it brings me to reflect on “new beginnings.” As the mother of a high school senior, I know first hand the jubilation young people feel with a fresh start in the world officially as an “adult.” But along with the title comes immense responsibility, most importantly in the area of finances.

I can NOT stress more the importance of building, maintaining and keeping a good credit score. Without good credit, life becomes quite difficult. In order to buy or lease a car, rent an apartment or eventually buy a house you must have good credit. Credit scores can range from 300-850 with an average between 650-800, and it takes work to get there.

Ryan Guina is an entrepreneur and writer. He has worked for Fortune 500 companies and served six years in the USAF. He writes about money management and small business topics at Cash Money Life and military money topics at The Military Wallet. You can follow his twitter feed.

Like it or not, your credit score is important. It is used by lenders to determine your eligibility to get a loan, the interest rate and terms you may be eligible for, and it can even be used as a screening device by landlords, employers, and cell phone companies.

The topic of whether to hold on to credit cards or replace them with cash and a debit card instead has become a major issue since the onset of the current recession. With so many people losing out on a mortgage loan or some other form of credit because of failures in the banking industry and on Wall Street, some have decided to do away with credit completely and work with cash to better manage their money and spending habits.

Unfortunately, we still live in a credit-based society which requires consumers to have a good credit score to qualify for things like home loans, car financing, various forms of insurance and even a job. Recently, Ray Martin, a financial contributor for CBS’ MoneyWatch.com, recommended that consumers hold onto their credit even if they don’t think they should. This opinion forces a new question regarding money management: Should we or should we not use credit?