FREE Credit Report and so much more...

We've all seen the gimmicks to get a "free" credit report, but of course they're not always free. I'm a HUGE advocate that everyone should know their credit score and am constantly looking to improve my score without draining my wallet.

Did you know that on April 1st a new rule to help you weed out the impostors will take affect? Titled the "Free Credit Report Rule", all websites that advertise "free" credit reports but require you to sign up for monthly credit -monitoring subscriptions or other services will HAVE to include a disclaimer. The good news for you is that you'll be able to spot these websites in a second!

The New York Times featured a great article in today's news titled "New Disclosure Roles for 'Free' Credit Reports" if you'd like to get more information on the new rule and required disclosure message.

Click here to read full article

Now on to the GOOD STUFF...

How can you get a FREE credit report?

My secret is a website called Quizzle. I first learned about the site a few months ago when a colleague and close friend suggested that I check it out. Of course I was a bit skeptical but decided to investigate and do a little research. Sure enough, it's FREE with NO strings attached and it's now one of my favorite financial websites. I've been a member for three months and haven't paid a dime.

10 Reasons to try Quizzle

1. It's FREE! Quizzle offers additional paid services and perks, but you can get a FULL credit report AND your credit score that are both 100% FREE

2. Safe and secure website

3. They partner with Experian, one of the main credit bureaus so you get a reputable score you can trust

3. No social security number OR credit card information needed

4. Able to get two credit reports a year, one every six months

5. User friendly

6. Great resource for more information on money management - Check out "Quizzle News"

7. Get more information about your home, including information on your home value, mortgage, along with other neighborhood statistics

8. Helps you evaluate your monthly budget and "rainy day fund"

9. Offers FREE advice on how to improve your credit score, save more money and learn to budget properly

10. Amazing Reviews from CNN, The Wall Street Journal, USA Today and more

Still not convinced?

Click here to read more about their FAQs

I hope you'll check it out and love Quizzle as much as I do! Everyone should know their credit score and with Quizzle there are no more excuses...you can only help yourself and your future!

Click here to go to Quizzle.com

Breaking News: Credit for tweens? Seriously?

Issuing credit for TWEENs? Really? Individuals in their mid-late twenties and thirties can barely manage credit, how can we trust tweens to do the same?

"Buy Now, Pay Later (Maybe with Your Allowance)", a New York Times article published on Friday, February 6th written by Randall Stross outlines a new type of "payment option for anyone without a credit card or a debit card, no matter how young, has just become available." It's name, "Kwedit Promises" issued by Kwedit.com. Kwedit is linked to the newest internet games, also referred to as "nurturing games". (Foo Pets and Puzzle Pirates, think FarmVille) Also, this is the first form of credit that doesn't require getting a parent's consent.

Online participants can "buy" goods and services to participate in their online game. The example from the article talks about buying Purina Puppy Chow for their virtual pet in Foo Pets, a $3 good in this case. Once a participant "buys" their good they have three options to pay it off:
1. Credit card or debit card
2. Cash sent in a mailer
3. 7-Elleven stores. Talk about new trends! "A user can print out a barcode and head to a 7-Eleven store, which will accept cash, scan the code and notify Kwedit that payment has been made. In the next three months, a Kwedit logo will join those for credit cards and other payment methods on the doors of all 7-Elevens, a company spokesman says."

Industry Trends on virtual goods via the New York Times
1. In 2008, $510 million was spent on virtual goods
2. In 2009, amount doubled and $1.03 billion was spent on virtual goods
3. Estimated that in 2010, $1.6 billion will be spent on virtual goods

Here's the scary part...the key demographic is girls ages 12 to 14. Scott Sorochak, Co-Founder of FooMojo, that operates Foo Pets said “so, long run, if Kwedit is successful, that becomes the de facto virtual credit score, like Experian’s and the other FICO scores.”

The next generation of kids are could potentially impact their credit score (for better or for worse) starting at twelve years old! The article suggests that "Kwedit is a way to become acquainted with credit early, while still on training wheels." I don't think that twelve year olds are ready for credit or responsible enough to understand it's potential impact on their future.

Click here to read the full article

Yes, you should care about your credit score!

I've recently re-connected with one of my closest friends from high school and she's been a huge inspiration in encouraging me to keep on digging into financial issues, so this one's for her!

First of all, let's start with the basics.

What IS a credit score?

Your credit score is a value typically ranging between 300 and 850 and is a way for institutions to asses your creditability. The closer you are to 850 the better. In theory this number tells someone how creditworthy you are or how likely are you to pay your bills. This score is then used to determine whether or your not you're approved for a line of credit, plays a part in determining your credit card limit and can pre-approve you for additional credit.

Your credit score is based on credit reports from one of the three main credit bureaus:

1. Experian

2. TansUnion

3. Equifax

There are multiple ways of calculating your credit score, but FICO is the most popular and widely used. The credit bureaus all have their own ways of calculating a credit score but think of them as directional and don't get hung up on needing a single, exact score.

*Don't fall in the trap of subscribing to contractual gimmicks to get your credit score. Keep reading, take it all in and in my next entry, I'll show you a great website that gives you your credit score for FREE. No credit cards or social security number needed, promise.

Why is your credit score important?

Higher credit scores can help you with the following:

1. Qualify and obtain a loan at a lower interest rate

2. Get a higher credit limit

3. Ensuring there's no fraudulent marks on your report that could be hurting you and making sure no one has stolen your identity

4. Get a house or apartment - landlords can request to check your credit

What's considered a good credit score?

Unfortunately there's no exact answer but generally anything above a 700 is considered a good credit score.

What affects your credit score?

Per FICO, more than 20 factors in five different categories are considered when calculating your credit score

1. Payment history - (35% of your score) This is based on how well and often you pay your bills and I mean ALL of your bills. Payment history takes into consideration your credit cards, retail accounts and details on late or missed payments along with public records like bankruptcies, unpaid tickets, and money owed to collection services.

2. Amount you owe compared to available credit - (30% of your score) This factors ALL of your open accounts and looks at the how much debt you have in comparison to you total line of credit.

3. Length of credit history - (15% of your score) Start establishing your credit as soon as possible! Remember that having a credit card doesn't mean you should max it out. The longer you have had and shown that you can use credit the higher your score will be.

4. New credit - (10% of your score) Open accounts sparingly and only as you need them. Trying to open or opening multiple credit card accounts within a short period of time hurts your credit score. Think about it, you're opening numerous accounts and the agencies don't know how you'll handle it, can you pay off your debt? Are you responsible? You've got to prove yourself and build up your credit history slowly...

5. Types of credit - (10% of your score) This part of your score considers the different types of credit you're using and the total number of accounts you have. For example: credit cards, store accounts, car loans, student loans, mortgages, etc...

In essence a high credit score SAVES YOU MONEY! You can qualify for credit cards at lower rates and obtain important loans that can help you buy a car or even a house.

Stay tuned to learn how to get a FREE credit report and the 10 common myths about credit scores...