How many credit inquiries on your credit report are enough to detonate your credit? 6 credit inquiries may be the magic bullet. Go above that in a 2 year period and your credit score may be affected. In general, credit inquiries tell lenders you are hunting for credit and in their pessimistic way, they assume you are desperate. The good news is, checking your own report doesn't count as an inquiry, nor do the routine checks your current creditors conduct. Phwew.

The interesting article we link to below says banks may pull your credit report before approving your app for a checking account - that's 1 inquiry and counting.....

"Seeking to build or improve a credit score? You need to do some careful research before opening a checking account. Yes, a checking account.
That's the word from John Ulzheimer, director of consumer education for Credit.com, an online credit-information service. Reason: Some banks pull your credit report when you open a checking account. If you're not careful, this alone can ding...." Continue Reading

Here's an interesting if somewhat eggheaded article about the structure of our financial society and whether it represents the proverbial house of cards. Are we strung out on credit? What happens if one day we all stop believing in our safety...?

Read about it:

"Many people are unaware of the vital role that attitudes play in a society built on credit. For instance, with the fractional-reserve based lending model that exists in the U.S and elsewhere, banks' loans and other obligations outstanding typically exceed cash on hand by a wide margin, meaning supposedly safe institutions are technically insolvent--often from day one. It is only depositors' willingness to believe that they will have ready access to their money when they want it or need it that keeps the system afloat.

However, once enough people start thinking otherwise, that can set the stage for a major crisis. In "Ponzificating,"The Economist explores the question of whether the modern day financial system as a whole is "a confidence trick."  Continue Reading...

Yesterday we talked about credit card company tactics that jack up rates. For more detail, check out this great article by David Bach which shows you how to defend yourself against the some of the top interest exploding penalties imposed by credit card companies:

"Of all the games the credit card companies play that end up costing you thousands of dollars (late fees, over-limit fees, transfer fees, and so on), it's always been the interest rate game that hurt the most -- until now...." Continue Reading...

It's a given that the worse your credit gets, the worse you're treated. One practice which many credit card issuers engage in is raising interest rates on a whim and especially if you're late or miss a payment. Another is called universal default. Read more here:

Today brought some good news on the credit card crisis in the US: CitiGroup announced that they would end their ‘universal default’ practice, which increases rates for card holders when they default on other debts. Continue Reading...

It can be difficult to describe exactly how your credit report interacts with your credit outlook. The key thing to remember is the better the report, the less you'll pay in interest - that's where the real benefits are.

Read about how your report plays into your finances with this article:

"How you pay your bills and how much you keep on credit is crucial to building and maintaining a good score," says Geoffrey Davis, a certified financial planner in Frisco, Texas. The easiest way to improve your credit is obvious: Pay off your debt on time.

"However in our 'keep up with the Joneses' society, this is clearly easier said then done," says Jim King, a certified financial planner with Balasa, Dinverno & Foltz in Itasca, Ill. King advises consumers to obtain a copy of your credit report and understand how the FICO score is calculated..." Continue Reading...

If your score isn't high, it's a real downer. Only about 3% of Americans know their score - are you one of the elite? Your credit score can be worth hundreds of saved dollars every month when you figure the best scores get the best rates on mortgage, car loan, credit card interest, even insurance premiums.

Read up on credit score here:

"When you left school, you probably figured that would be the end of grades, report cards, and disapproving comments scrawled in the margins of your term papers. What a cruel fate, then, to learn that another score follows you through adulthood. That's your credit score, and poor marks can do more than get you grounded. They can cost you a lot of money..." Continue Reading...

Is it really so difficult to take ten minutes once a year and download your free credit report? It's tragic that so many people remain in the dark about their financial file and its critical importance to their credit. Fixing errors is not tough and could result in instant rises in your credit score. Need a bigger nudge? 

Here's an article on the Ouch factor of bad credit reports:

"Many of us could go through life never knowing much about the information that lenders get when we apply for a loan. We remain plainly oblivious, even though our credit scores could cost us lots and lots of money..." Continue Reading...

Warning Mom & Dad - now you've got to prep the little ones for credit cards, not just take them to the bank for that ceremonial first savings account (or is that now a quaint relic?)

Here's a good article for parents with enough time to consider their kids' credit (not just their own):

"Your teen could probably not care less about his or her credit score, and to be honest, there's little he or she can do about it before college. But ensuring your child's financial responsibility and good credit in the future means starting early. Much like learning a second language, acquiring financial literacy is best suited for the young." Continue Reading...

You know  you have a credit score from the 3 credit reporting agencies; but you might not know that there's a bankruptcy score lurking in the background too. What, pray, is a bankruptcy score? It measures how likely you are to go bankrupt on a scale from 200- 2000+ (lower scores are best). The reporting agencies provide this score to lenders - though you're not likely to have access to it any time soon. Unnervingly enough, the score is rumored to be partially derived bylooking at the things you buy on credit.

Upshot? Possibly that poker site will not go over real well.

Learn more about bankruptcy scores.