As someone who’s lived in Texas for nearly five years, it’s bad enough to see studies that say the South is more impoverished and fatter than the rest of the country. Now data suggests we Southerners have the nation’s worst credit, too.

Click the image to enlarge Recent data shows those U.S. cities with the highest average credit scores are all in the Midwest or North, according a map of the country’s highest and lowest VantageScores created by credit bureau Experian. Those cities the with lowest average credit scores, meanwhile, can often be found in the South, with five of the six lowest-scoring cities in two particular states: Texas and Louisiana.

Why is that? Read full article…

Credit score Q&A: “What credit score do you start with?”

Questions related to credit scores are always difficult to answer because companies like Fico don’t reveal all their scoring algorithms.

Credit scores also happen to be very unique from consumer to consumer.

It’s worth noting that you won’t even have a credit score unless you’ve got enough information on your credit report.

By enough information, I mean at least one credit account that has been open for six months or longer.

And that account must have been reported to the credit bureaus within the past six months.

Without that, you probably won’t even have a credit score.

So assuming you do have the bare minimum, your credit score will be determined by the open account(s).

If your one account is in good standing, meaning you’ve made payments regularly and kept the balance low (credit utilization), you should have a good credit score.

After all, without any negative information, there’s no reason you should have a bad credit score.

However, it’s hard to say whether it’ll be above 800 or just above 700 – that will depend on a number of different factors, some that Fico and the other credit score creators don’t really make clear.

Credit Scores Means Little without Credit History

Keep in mind that without much credit history, a credit score means very little.

In other words, that three-digit score needs to prove itself before credit card issuers and lenders give you any, ahem, credit.

For example, mortgage lenders typically require three open credit lines with two years of history on each.

Without them, even your excellent credit score may be useless.

In conclusion, don’t concern yourself with the credit score you start with – focus on it long term, and make sure you take the right measures to keep it high, like making on-time payments, keeping balances low, and applying for credit sparingly.

Tip: How to raise your credit score.

Rensselaer Polytechnic Institute has named Jacqueline Novogratz its 2010 entrepreneur of the year.

Novogratz, the founder of the social venture-focused Acumen Fund, is being given the award, named in honor of 1953 RPI alumnus William F. Glaser, at a ceremony in December.

Gina O’Connor, the director of the university’s Severino Center for Technological Entrepreneurship, said Novogratz’ “emphasis on eradicating poverty from the world is truly inspirational for our students and the rest of the Rensselaer community.”

Acumen Fund invests in startup companies in the developing world. Read full article…

Which is preferable, having a credit card, or being approved for a loan? To answer this question, one must examine the various pros and cons of credit lines vs. loans, as well as personal preferences and spending habits. Having a credit line handy is a great way to ensure that funds are available when an important purchase needs to be made. However, many people cannot handle the commitment of paying the balance each month, and a traditional loan certainly provides some benefits for someone currently in credit card debt.

When a Credit Line is Needed

Credit lines give people long-term spending power that can be used as needed at any time. Having a large credit line available can give the cardholder financial flexibility in times of need.

Read full article…

Details released by the UK Insolvency Helpline have shown that credit cards are contributing to worrying levels of personal debt . The organisation is calling for more debt relief for those getting into financial problems.

A representative for the UK Insolvency Helpline has said that many people in the UK are finding themselves in financial difficulty due to an inability to follow through on their good intentions, including paying off the debts on credit cards and overdrafts .

Richard Sorsky, a councillor at the Helpline, said that many people intend to pay off their debts but then use the money for other purchases. Read full article…