One of the frustrations that many consumers have with the whole credit scoring process is the fact that it is difficult to get a copy of a credit score for free. It is true that web sites like Credit Karma and Quizzle offer access to free credit scores, these scores are not the versions that lenders actually use. Even the free score that you get when you sign up for a credit monitoring service doesnt always reflect what lenders use to determine your credit worthiness. Instead, lenders use specialized credit scores that, while often based on the FICO scoring model, have their own tweaks. As a result, many borrowers are frustrated when they are denied credit due to credit scores they may never see. Lenders can refer them to a free copy of a credit report, but this does not include the credit score.

All of this changes, though, on July 21, 2011.

How You Could Be Entitled to a Free Credit Score

One of the provisions in the Dodd-Frank Wall Street Reform Act singed into law in July 2010, is known as the Free Access to Credit Scores.

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Is the end of credit cards coming? by IndexCreditCards

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Credit cards to die out?

Money magazine editors know how to write an arresting headline, and one published Monday was a real doozy: “The end of credit cards is coming.”

For some time now, this blog has been predicting seismic changes in the business models of credit card companies, but it’s never thought in those apocalyptic terms.

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If you’re tired of having to wait for your paper benefits check in the mail, listen up! The U.S. Department of Treasury announced waiting for those paper checks are soon to be a thing of the past. The Treasury will now provide all federal benefits through a prepaid “Direct Express” Debit MasterCard. This also goes for the 8 million of you receiving Social Security Disability Insurance benefits. This scheme is projected to save Saving Social Security, and ultimately the taxpayer, $1 billion over the next decade with the absence of paper costs. You can also choose a direct deposit option to your checking account. Either way you go, you don’t have to choose until March 1, 2013.

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Though the typical household reduced its unsecured borrowing by £500 in 2010, as families tightened their belts and tried to pay down debts, the average household still owes around £8,000 on credit cards and loans.

PWC has calculated that the increase in credit card rates – which have steadily climbed despite the record Bank Rate – would mean families would have to find an extra £1,800 a year just to pay off the interest.

This extra burden on consumers could have a serious effect on the economy, the report warned.

Richard Thompson, partner at PwC, said: “Consumers will find it hard to absorb such large increases in debt interest payments without cutting back on spending.

“Given the historical significance of debt fuelled consumption to the UK economy, this prolonged contraction may impede retail sales and could be a drag on economic growth.”

Mortgage brokers, too, have warned that home owners, especially those on variable rate mortgages, need to prepare for bigger bills.

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Don’t Get Carried Away by the Market Rally @ WSJ

Every Friday we’ll highlight a few of the great articles published throughout the week, for other interesting articles you can follow us on twitter account and subscribe to our twitter feed. Enjoy your weekend! Remember to check out Dollar Matters every Monday and Wednesday

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