rebuild.org finance news:

Back to Latest News Headlines

Consumers Urged to Pay Heed to Their Credit Scores This Summer

[Aug 13, 2007.]


This summer, financial experts are warning consumers that they need to pay particular attention to their credit scores - before it's too late.

Your credit score is a three-digit number which indicates how well you handle your debt. It can be as important as your IQ in determining your financial success.

The credit score can determine what kind of interest rate you'll end up paying for your personal loans, auto loans, mortgages, and credit cards. The lower your score happens to be, the more you'll pay in interest charges.

A report from the Consumer Federation of America and Washington Mutual indicates that less than 60% of Americans have their credit scores in their possession. Many of those surveyed also say they really don't understand their credit scores.

The FICO score is an invention of the Fair Isaac Corporation, and varies from 300 to 850. If you have a score under 600, it's considered to be poor. About one in six Americans have scores which fall into this category.

You can improve your score by paying your bills in a timely fashion and resisting the urge to become a spendaholic, as far as charge cards are concerned. The lower your credit card balances are, the more likely it is that you will have a lower credit score. You can obtain your score from one of the three main credit reporting companies—Equifax, Experian, and TransUnion. Although you can get your actual credit report for free, you'll have to pay up to $15 for your credit score.
As an alternative, when you apply for a loan, you might be able to obtain your score from the lender.

Financial experts say that, this year, consumers should remember that knowledge is power, and having knowledge of your credit score may be the first step to financial freedom. The more information you have about your personal credit picture, the better-equipped you'll be to improve your finances in the future.

Julie Ann Amos
August 13th 2007

Recent News

  • Consumers Searching for Ways to Rebuild Their Credit
    This summer, a number of American consumers are looking for ways to rebuild their credit history. Such a goal is important, considering the fact that a less-than-stellar credit rating can cost you thousands of dollars in interest and life insurance costs. [7th August 2007]

  • Wells Fargo Posts Rise in Profit
    Wells Fargo, one of the nation's leading providers of home loans, saw its second quarter profits rise 9%, despite the difficulty that some consumers are having paying their mortgages this year.[7th August 2007]

  • Debit Card Use Can Yield Some Unwelcome Surprises
    Debit card use has exploded in recent years, with consumers turning to the cards as a convenient alternative to writing checks. [7th August 2007]

  • Consumers Question Credit Report Offers
    Some American consumers this summer are questioning "deals" offering copies of credit reports to those who pay for special services. While the practice is legal, experts say it may not be the best idea for a consumer's bottom line.[6th August 2007]

  • Citigroup Sees Rise in Second Quarter Profits
    Citigroup Inc. is reporting an 18 percent jump in its second-quarter profit.[6th August 2007]

  • Consumer Optimism May be Building
    Consumer optimism appears to be growing again, according to a Reuters/University of Michigan Surveys of Consumers. The optimism appears to be fueled by renewed hope in the job market and in salary situations. [6th August 2007]

  • Home Construction Rises
    The troubled housing industry received some positive news recently with a report that new home construction increased 2.3% in June. However, enthusiasm was dampened by the fact that the new construction rate in May was revised downward. [2nd Aug 2007]

  • Economic Growth May Be Lower Than Expected
    The head of the Federal Reserve Board is taking a conservative course when it comes to predictions about the economy—a move that's being applauded by some in the investment sector. [2nd Aug 2007]


news subscription:

Easily subscribe to the rebuild.org news feed.

Read our news without even visiting our site!

Subscribe to our news


news archive:

Rebuild.org monthly news archive