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I recently took a closer look at the so-called “Fico Score Simulator” offered up by Fico, founder of the all-knowing and all-powerful Fico score.

The tool essentially allows consumers to determine which actions will improve their credit score the most, instead of simply guessing.

You can gain access to the Fico Score Simulator if you purchase your credit report from the company, but they offer a sample to give us some insight.

Their sample went with a base 707 Fico score, which I consider “good credit” in my credit score range.

But suppose you needed that score to be higher to qualify for a mortgage or obtain auto loan financing.

Well, the Fico Score Simulator says your best course of action would be to pay down 90-100% of your credit card balances over the next 24 months to raise your credit score to between 757-777.

This action would help you in two ways – you’d have lower credit utilization and deeper credit history on the associated account(s).

But two years is a long time to wait for such an improvement. The simulat

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The federal government’s proposal to bring in tighter consumer credit laws is a positive, but long overdue, move, it has been claimed.

Earlier this week, the government issued a Green Paper aimed at reforming the regulation of various financial products including credit cards.

A subsequent editorial by the Geelong Advertiser has noted that the proposals aim to make banks “smarten up” about who they extend credit to, how much credit they extend and what they charge.

It suggested that while such reforms may affect the decision of Aussies looking to compare credit cards and other loan facilities, they may ultimately improve the rights of consumers generally.

“The upshot, of course, is that the cost of credit will rise, and that access to credit will become tougher,” said the newspaper. ” Read full article…

Americans may have a more difficult time securing loans, competitive rates and credit cards with low credit scores

As the U.S. economy struggles to recover and unemployment rates remain high, Americans may have another issue to worry about before they can improve their personal financial situation – their credit scores. A new report – released by FICO – reveals that Americans’ credit scores have dropped to a new low, endangering consumers’ ability to secure loans and competitive rates for home and auto loans as well as credit cards.

Citing data from FICO, the Associated Press reports that 25.5 percent of American consumers – which roughly translates to 43.4 million individuals – carry a FICO credit score of 599 or below. Read full article…

Credit card experts have predicted that interest rates will continue to rise, with providers balancing the risks they are taking.

The Bank of England recently reported that write-off rates on credit card lending have now reached record highs, leading to spreads on unsecured lending sharply rising recently.

A spokesperson for Moneyfacts.co.uk detailed some of the changes to expect in the credit card market over the coming years and identified who would be affected.

She said: “Providers have been putting rates up and obviously there’s high unemployment and the risk of people defaulting and not repaying their debts is still quite high, so they’re very strict on who they give their cards to.

“The customers that pay off just the minimum every month are going to be the ones who are hit hardest. Read full article…

Consumer credit declines in May.

Consumers across America are slowly paying off their debt, continuing a trend has been exhibited in 18 of the last 20 months.

According to the latest report from the Federal Reserve [Board], the amount of money consumers owe to creditors declined at an annualized rate of 4.5 percent in May. That number equates to a drop of about $9.15 billion in consumer debt. The new national number for total consumer debt is $2.42 trillion. This was the fourth month in a row that consumer credit declined. Read full article…