You credit score will help or hurt you, and it’s up to you to help or hurt your credit score. You may be accepted, or rejected, for a line of credit, and it’s all waiting on your credit score and what you’ve done to help or hurt it.  Here are five tips to watch out for to prevent damaging your credit score:

1.    Bad Credit History
Past credit history usually counts for 35% of your credit score.  Missed and late payments will dent your score, with negative entries on your credit file for six years. However, the impact of missed and late payments diminishes over time, especially if you have been making payments on time. You will see changes for the better on your credit score if you make the effort within a year.  

2.    Current  Address
Lenders like continuity. A score will be higher if you have been at the same address for three years or more. There may be some impact if you have had two addresses in the last three years, but less if you are a homeowner. The greatest impact will found within having multiple address within the last three years or if you have been at your current address for less than six months.

3.    New Job
As with residency, when it comes to employment continuity is also vital. Ideally, lenders are looking for someone who has had the same job for a number of years. Such applicants will benefit from the maximum score for this. It is important to be in your new job for a few months before applying for new credit. It will not affect your credit score by having multiple jobs at one time.  It is, however, a bad idea to go through many jobs and not be able to maintain stability within the workforce, such as having three different jobs at three different times throughout three different years.  As well, periods of unemployment also will negatively affect your credit score.

4.    No or New Bank Account
Lenders will award maximum points if you have been with your bank for a number of years. Having only recently opened your current account will reduce the score. Not having a bank or current account will be most detrimental to your credit score.

5.    Multiple Credit Score Applications
Every time you apply for credit, a search is made and will be recorded on your credit file. Multiple credit applications in a short space of time will negatively impact your credit score. Such applications may be perceived as indicative of someone desperately trying to obtain credit. It is commonly accepted that making one credit application every month or two should not have too much impact on your credit file. However, if you have recently made a number of applications and been declined, it is advisable not to make any new applications for six months before applying again. It also gives you time to review your credit file and determine if there is anything on there which shouldn’t be.

1. Keep Your Numbers to Yourself

It is crucial that you protect your Social Security number, credit card and debit card numbers, PINs (personal identification numbers), passwords and other personal information. A thief can use these details to order checks or credit cards, apply for loans or otherwise commit fraud using your name. Do not provide financial and other personal information in response to an unsolicited phone call, fax, letter or e-mail, as it could be from a fraud artist masquerading as a legitimate business person or government official. Be particularly cautious with your Social Security number (SSN). Keep bank and credit card statements, tax returns, checks and other sensitive documents in a safe place at home. Shred these documents thoroughly before discarding them.

2. Know Who You’re Dealing With

Deal only with legitimate, reputable businesses. Only participate in business with companies you already know or that have been recommended by people you trust. Do your research before giving money or personal information to an unfamiliar merchant (or charity or any other organization).

3. Get It In Writing

Get key details in writing and thoroughly check them out before agreeing to anything. Don't rely on a sales person's oral representations for a significant purchase or investment. Get as much written information as possible, including a contract, specifying cost information and your consumer rights. If a marketer refuses to supply written information or employs high-pressure sales tactics to get you to act fast, take that as your cue to dismiss the call or attempt for a transaction.

4. Beware of "Deals" Requiring Money Up-Front

"Congratulations, you've won a free vacation!" "Get rich quick—at no risk!" "We'll fix your credit problems—fast." These are common slogans that fraudulent companies and individuals use to lure in their fast income from their consumer prey. They're likely to be schemes to trick you into sending money or providing bank account information in exchange for promises of goods or services that will never be delivered. Be skeptical of any offer that's "free" or otherwise hard to believe and that, as a precondition, requires you to pay money (perhaps for a supposed "fee" or "tax").

5. Review Bills and Mail ASAP

It is important to always review credit card bills and bank statements for any errors or for any purchases you didn’t make or an unauthorized withdrawal from your checking account. If you notice a problem, contact your financial institution immediately. While federal and state laws limit your losses if you're victimized by a financial fraud, sometimes your maximum liability depends on how quickly you report the problem (generally you are allowed to report an error within 60 days of the event taking place). Also make sure you get your statement every month. If no statement arrives, that could be a sign that an identity thief has changed your mailing address for purposes of committing fraud in your name but from another location. As for personal mail, make sure to retrieve it everyday, as your mail may include checks, credit card applications, bank statements and other items of value to a thief.

Try to send and receive mail using locked mailboxes or otherwise secure locations. If you're going to be away on vacation or some other travel, have your mail held at the post office or picked up by a neighbor. If you're expecting a check, a credit card or bank account information and it doesn't arrive in a reasonable period, notify the sender. As for outgoing mail containing a check or other personal financial information, put it in a blue Postal Service mailbox, hand it to a mail carrier or take it to the post office.

Currently, there’s an average of 6,000 people leaving their jobs each month, whether due to quitting or due to layoffs, with the latter being the predominant problem around the nation. With so many industries and companies participating in large layoffs and overall company restructurings as if it were a fad, so many people are feeling the intensity of the insecurity of their jobs.  

While you may not have control over your job as to whether you’ll have one tomorrow or in a year, you can have some control over your own security of your situation. It is important to maintain a strong emergency fund. It is suggested that any emergency fund (untouched until needed) should contain the minimum worth of three to six months of financial need. However, the bigger you can build a financial emergency fund, in case of any type of emergency (whether job loss or what have you), it is important to build up the fund as much as possible and to never touch the account until necessary.

As a last resort, consider opening up a home-equity line of credit or apply for a low-rate credit card that you hope you will never have to use. It’s a lot harder to do either of those things if you're already unemployed, so do it now, but only with the intention to use at a later time when necessary.  Do not utilize the “emergency” credit until you need it, if you ever need it.  

In regards to credit, make sure that you are not only making your minimal monthly payments on your credit cards and other debt, but if possible, pay off as much of your debt as possible now. The less debt you have when an emergency arises (such as a job layoff for you or your spouse), the less you’ll have to worry about with credit companies later.

Whether or not your job is secure, make sure to know your company’s policies in regards to health insurance and other benefits. By law, it is required that your company must keep you on its health plan for 18 months after a layoff, although you may have to pay the entire premium. It is also important to inquire to your spouse’s company in regards to joining your spouse in their insurance plan. Many employers consider a spousal layoff to be a life-status event (which means you can switch to their plan immediately), it's not a given and some will let you change plans only during open-enrollment periods.

It is important to prepare yourself in the current moment for an emergency in the future. Do not put off saving money or paying off your debt until a later time. The more you can do now to secure your financial status, the better off you will be in case of a financial emergency in the future. 

With a growing number of people switching from landlines to cell phones, or both, it is important to weigh the high costs of your telephone bills. 

With so many cell phone plans, it is very possible to relieve yourself of a landline and extra bills.  If you opt not to have a cell phone plan and remain with a landline service, it is important to consider the various types of plans.

Landline Phone Services

It is important to review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies, including wireless companies, to find an inexpensive calling plan that meets your needs.

If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. If your current plan involves options you do not use, readjust your plan and rid yourself of additional fees for services you don’t use or need. Each option you drop could save you $40 or more each year.

For international calls, it may be cheaper just to use international calling cards. Compare per minute rates and surcharges for different prepaid phone cards and calling card plans to find the one that saves you the most money. Generally, the more minutes you buy on calling cards, the more you will save on per minute rates (such as you will save a lot of money when you buy 1,000 minute international calling card versus buying a 200 minute international calling card). 

If you have a long-distance calling plan with your landline service, dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra.

Wireless Phone Services

If you use a wireless phone, make sure your wireless calling plan covers the calls you typically make. It is common now for most services to include national rates/plans, allowing for free long distance calls.  It is crucial to understand your wireless plan with its promotions, peak calling periods, area coverage and roaming, and long distance requirements to avoid paying too much.

Cell phones services typically offer free nights and weekends calling plans. This allows you to save a lot of money if you have the ability to choose when you make calls. As well, there are plans that allow specific amount of minutes and plans that may be free calls if you have specified numbers to call/receive calls.  With so many options for cell phones, the prices are becoming more affordable for everyone with low monthly rates and with the ability to pick and choose tons of options that best suit you and your calling needs/desires.

It is important with any phone plan to compare prices and plans and pick the one(s) that best suit you and your needs. Be careful of plans that require two-year contracts or of plans that aren’t guaranteed to stay the same. As well, be careful with the type of cell phone you buy – most plans offer promotions for specific cell phones, allowing them to either be free or for under $50.  If you need to buy a phone, make sure you compare prices again and buy a phone that is useful to you. Do not buy a Blackberry for $350 if you only need a basic Motorola or Nokia for $70, or can buy a used cell phone or use an old one from a family member or friend. 

If you do opt for a cell phone plan, for whatever type of calling need, you may be better off with wireless phones than with landlines included at all. It may save you tons of money to rid yourself of landline services in the new era of cell phones. 

There is a major difference between negotiating your debt with a financial advisor/counselor and filing for bankruptcy.  Filing for bankruptcy must always remain a last resort and be considered thoroughly before initiated. These are very similar acts in the respect that they help you get out of great debt.  However, there are many differences to filing for bankruptcy versus negotiating your debt with a credit counselor.  

Negotiating with a Debt Counselor

You should initially attempt to negotiate your debt with a counselor first and foremost. If that fails, then consider bankruptcy.  As for negotiating with a credit counselor, you are in entire control of your finances and debt, such as how quickly and how much debt you rid yourself of. Your matters will be private with a credit counselor.

Negative items can remain on your credit report for up to seven years, although you can be back on track with credit options in as little as a year, depending on ability to pay reduced settlements. As for the remaining balance of your debt, you may be able to settle up to an average of 30% to 50% of the debt balance. 

Negotiating any amount of debt with a credit counselor is the best decision and action to make. From there, if you and your counselor feel filing for bankruptcy may be the best thing for you and your financial situation, then consider the risks and impacts of filing for bankruptcy.

Bankruptcy

Bankruptcy is a public matter and takes an average of five years to be completed. As well, once you go to the court, you lose all control of your financial problems and all decisions are made by the court.  At the same time though, the court can protect you from lawsuits. If you were to file for Chapter 7 bankruptcy, you will first need to participate in a court approved credit counseling program for six months prior before you can even file your case.

Bankruptcy does not only take a long time to initiate and then complete, but it will also follow you for many years after. Bankruptcy remains on your credit for ten years, and it may effect you even longer for certain employment and loan qualifications.

As for the overall remaining balance of your debt, bankruptcy will allow creditors to see 25% to 50% of original balances over a five year period. Dealing with debt is an expensive issue, especially when you take on filing for bankruptcy. You should expect to pay around $1,500.00 for legal fees and court costs, with additional costs for an attorney that specializes in bankruptcy. You should only accept an attorney that initially offers free consultations.

It is important to know and understand your checking account – as it is not just a place to store and receive your money as you wish.  A checking account is part of your bank and it should work for you, not the opposite.

Look into banks that offer free checking accounts; these may be particular to students.  Make sure to know the policies and abide by them. Watch out for fees that you may be charged when you have too many ATM withdrawals, too many checks written, or use a funds transfer. As well, it is definitely helpful to have a checking account that you can access anytime (via online an online account and with many ATM machines in any and all areas you made need them). Free online banking, bill pay and management, without attached fees, are not uncommon – it is necessary among any checking account. 

Most checking accounts that work for you may offer free checks that the bank offers in the maximum amount they allow, such as 50 or 100 checks.  Take the initial free checks and do not order any (especially for a fee, until you need them down the line). If you need more, you  can simply go online and order more, but leftover checks are more typical than not, especially with online bill pay options becoming more commonplace. Extra checks become nothing more than wasted paper and wasted dollars.

It is important to keep track of your bank/checking accounts all of the time.  It can be costly not to keep your financial records in place and accurately accounted for.  All banks will charge you some type of fee for overdraft fees. Your debit card can easily get you into the red if you don’t know what’s in your checking account. Make sure to stick to ATM’s that belong to your bank. Banks tend to charge their own additional fees for withdrawing money from other bank’s ATM machines, plus the ATM fees when you withdraw money, causing you to lose between $2 and $5 for each withdrawal unless it is within your own bank. 

As well, checking accounts and savings account can work together, for a small or no fee, that offer assistance in transfer funds if you accidentally overdraft one or the other. There may be a fee that is charged, but much less if you are signed up for the overdraft transfer assistance program. 

College tuition is rising – a lot.  Each year, college tuition is rising an average of about 6%, or about $700, for public universities.  However, despite rising tuition, financial aid programs have been reducing the amount of money they are distributing to students in need.  For example, Pell grants, the nation’s biggest need-based financial-aid program, reduced financial aid by an average of $120 per student. The nation's saved taxpayers $900 million by trimming its average award to $2,474. Colleges also reduced the percentage of financial aid they dedicated solely to needy students and increased the percentage for scholarships for students with good grades or test scores, the College Board reported.

Not only do the rising costs of college outpace financial aid, but also wages and inflation rates. The sticker price for an academic year at a typical public university is $16,400: $5,836 for tuition and fees, almost $7,000 for room and board, and an additional $3,500 or so for books, travel, and entertainment, the College Board estimated. About half of students get scholarships or tax breaks to reduce their out-of-pocket costs, however, bringing the average net price paid to about $13,000.

It is suggested that if the prices of college keep rising as they are, students who don't receive any grants will most likely pay more than $115,000 to reach graduation day. Those who do receive scholarships or other assistance (which are of a decreasing number) will most likely pay about $87,000. Thirty years ago, when the total sticker price of a year at a public university ran less than $3,000 and students took less time to graduate, the total cost of a degree was closer to $12,000.

The best bet for finding affordable higher education may be found in local community colleges and two-year schools.  In California and other such states with high numbers of community colleges, community college tuition actually dropped. On average, tuition at the nation's commuter schools rose an average of only 4.1% this year, to $2,300. That means even students who don't receive any financial aid but live at home and attend a community college could finish their freshman and sophomore years for as little as $8,000, including textbooks and transportation to and from classes, estimated the College Board.

The state protects consumers from old debts known as "time-barred" debts by applying a statute of limitations typically between 3 and 10 years, depending on the state. Federal law protects consumers from being sued by creditors after the statute of limitations expires under the Fair Debt Collection Practices Act (FDCPA). While these debt collectors can still attempt to collect what you owe, they cannot threaten to sue you because the lawsuit would be immediately dismissed as "time-barred" debt. You can stop debt collectors from contacting you at all about time-barred debt by simply sending them a letter telling them to stop contacting you. Once they receive this letter, they are not allowed to contact you again except to say there will be no more further contact or to let you know they intend to take some specific action.

Often times these time-barred debts are purchased by scavenger debt collectors who buy uncollectible, written-off, time-barred debt hoping to pressure you into paying it back even though it could be years expired. They usually call themselves litigation firms to scare people and use very aggressive collection techniques that often violate the provisions of the FDCPA. It is important to remember that you can take two simple steps to prevent these problems: (1) determine if your debt is time-barred, and if so, (2) write them a letter telling them not to contact you anymore. Any other word from them afterwards is now illegal.

Property taxes are sometimes put on the backburner as many home values are over-assessed and could afford to pay less than they do now. If you want to reduce your property taxes, you can simply contest the assessment of your home value. Suprisingly, less than half of all homeowners do this despite the fact that it is a legal and fairly easy process. Moreover, statistics show that most homeowners who do appeal succeed in getting their property taxes reduced. It is not uncommon for homeowners to save anywhere between $100 in smaller homes to $1,000 in larger houses.

You can get started on the process by garthering evidence that your property is overvalued by the taxing authority. If your local district appraiser has a website, you mgith be able to research the property values of your neighbor's homes. If not, you may have to visit the district appraiser in person. If you find that your house has a higher value than that of your neighbor's, check into why this is the case. Similar houses in size should have relatively similar assessed values. Also look into whether homes have sold for less than their appraised value in your neighborhood. If so, you could be entitled to a lower appraisal value. Any of these factors can be used to make an easy argument to get your bills reduced - why not try it today?

Whether it be the fact that retirement is getting far more expensive or that healthcare costs are rising, senior citizens are suffering from greater credit card debt than before. The National Consumer Law Center reported that the average credit card debt for consumers between 65 and 69 years old now totals almost $6,000.  The report states that nearly one-third of retirees describe credit card debt as a "hardship."

It is important that senior citizens learn the current processes of credit cards and of their finances. It is crucial for them to pay special attention to the Schumer Box provided with each credit card application, which includes information such as the card's default Annual Percentage Rate, credit limit, and late fees.

As well, it may be a good idea to consider hiring a financial advisor to help plan for your retirement. Only use a fee-only financial planner, who you are able to pay by the hour, or get the financial planner to approve the plan you create on your own.  Your plan will determine factors such as the age at which you can retire.  It also must contain a budget for living within your means, allowing you to figure out how much discretionary income you will be left with after paying for expenses. It is important to account for additional, and greater, expenses to come in the future with age and time – such as health costs.

Last, it is a good idea to consider postponing social security as much as possible for older Americans. Credit card debt, and other forms of debt, is largely due to seniors' growing expenses while they experience fixed incomes.  By delaying the start of Social Security for as long as they can, seniors will get an increased monthly payment when they do begin the program.  It may be necessary to work a few more years to cause for this delay, but more years of work will allow for the assets to continue to grow.

This tax season, the average federal tax refund that taxpayers will receive is $2,548.  That’s $2500 of money you have to choose to use it wisely.  It is not extra money that you get as a gift from the government; it is your money you’ve had to hide away all year.  Well, it’s back, and it’s yours – not to waste!

There are a few different things that would be best put to use with your extra earnings. For starters, consider your overall financial status – do you owe a lot of debt, or are you interest in making some wise investments?

If you owe debt, the best practice would be to put your money into paying off as much of your [credit card] debt as possible before considering anything else. Reducing or eliminating your credit card debt sooner than try to make money off of investments will save you the most money in the end.  

From there, if you have extra money or do not have debt to pay off, consider investing in an IRA, a 529 fund (tax-deductible college savings fund), or a CD. Currently, CD’s are averaging 5.4% interest rate, which is about double the rate of inflation.  Whether you have a Roth or a traditional IRA, you're allowed to make up to a $4,000 contribution ($5,000 if you're 50 or older) for tax year 2006 through April 17 this year. Or, if you can't make that deadline, you can make your 2007 contribution with it.

If you don’t want to make any investments at the moment and don’t have any debt to pay off, considering simply putting the money into your current emergency savings fund.  The best place to house your emergency fund is through a high-yield savings account. High-yield savings accounts work slightly different than money market accounts in that they typically don't offer check-writing capabilities, just as they don't limit your number of transactions as money market accounts can.
 
If you want to put your refund to use in more than one way, the IRS is now offering a split-refund option, which lets you designate up to three accounts at financial institutions into which you want the IRS to direct deposit portions of your refund.

Many people are aware the the market for subprime mortgages has essentially collapsed due to an increasing number of defaults by those who have adjustable rate (ARM) mortgages with poor credit, but what does all of this mean for the average person? Unfortunately, the consequences of this collapse may be felt by individuals in more than one way. First of all, several companies that deal in subprime mortgages are publicly traded and experienced sharp declines. This, combined with other concerns, caused a strong sell off in the stock market a few days ago that may have alarmed some of those holding mutual funds or other retirement funds. Secondly, the collapse is expected to expand into the larger home market, which may cause housing values to fall further this year. However, many economists believe that the US will be able to avoid a recession and even a significant rise in unemployment.

The reason so many people are concerned is because when housing values decline, people are unable to borrow as much against the home. This leads to decreased consumer spending which eventually leads to a slower economy. The subprime market collapsed because when these housing values decreased and people were unable to loan as much, they defaulted on other payments and were ultimately unable to pay their bills. Consequently, they defaulted on their mortgages. Many people also expect the government to step in and institute new credit rules that are more strict than the current set of rules that contributed to the collapse. While the effects of all of this are not yet realized, it is definitely an important situation for all homeowners to track - especially those with poor credit and subprime ARM mortgages.