Credit scores fell during the first quarter, according to the CreditKarma.com U.S.

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According to a survey from the Consumer Federation of America and VantageScore Solutions, the majority of Americans don’t understand how their credit scores are determined and when and how they’re used.

Of those surveyed, more than 67 percent incorrectly said that a person’s age is considered when determining a credit score. Moreover, a “majority” of those polled were unaware that a cellphone provider or landlord could consider an applicant’s credit score in deciding whether to offer housing or service – and at what price.

The survey underscores the importance of credit scores and the scores of Americans whose credit scores were negatively impacted during the recession. Read full article…

At some point, a responsible consumer may find themselves managing multiple lines of credit. These can range from utilities to credit cards and from school loans to home mortgages. Many consumers, however, do not understand the roles that their lines of credit play in influencing their credit scores. Below is a list of facts that consumers should keep in mind when considering how to handle their lines of credit.

• Utilities are as important as credit cards. Bills of any kind, even utilities bills, are as important to a consumer’s credit score as any other line of credit. Many consumers make the mistake of thinking that certain lines of credit, such as credit cards and home loans, are the only things that can affect their credit score. T

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Credit scores are used in nearly every industry to determine the financial stability of a person or business. There are two main types of credit scores – PLUS and FICO – with the latter being the most commonly used. Credit reports are issued once every three months by the three major credit reporting agencies, although the credit score itself is updated on a monthly basis. Maintaining a good credit score is the key to gaining approval for credit cards, mortgages, vehicle loans, and any other form of financial assistance.

How is the FICO Credit Score Calculated?

The FICO credit score is calculated based on five main factors – payment history (affects 35% of the credit score), amount owed (affects 30%), credit history length (affects 15%), new credit (affects 10%), and types of credit used (affects 10%). Each

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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…