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Inside this Issue:

Market Watch
Credit Q & A
National Credit Bureaus
Instant Gratification
Fraud Alert
How much does it cost?
Free Notary Services
Thank You

Credit Q&A

Q. What is my FICO score on a credit report?
A. It is calculated by Fair Isaac & Co., which uses formulas to analyze the data collected from your current and previous creditors.
Q. What does my score mean? 
A. Above 800 = Terrific
700-800 = Excellent
630-700 = Good
500-629 = Poor
Q. What is the effect of a lower score?
A. It can keep you from getting a job, renting an apartment, or getting car insurance. And, it can drive up the rate you pay for loans and insurance. Many credit card agreements today allow the issuing company to raise your credit card rate if your score drops significantly.
Q. How do I find out what my credit report looks like?
A. You can go to www.myfico.com to order a copy of your credit report for prices ranging from $12.95 to $38.95.
Q. How do I improve my score?
A. Reduce debt load, pay bills on time, and make sure your report is accurate at all times.

Today's consumers spend more freely and take on more debt than earlier generations for one key reason: instant access to whatever they desire. Credit cards and "easy-payment plans" make it too easy to buy big ticket items that once would have required months of savings.

Consumers "almost ignore the cost because it's in the future and it's not linked to the purchase in a psychological way," said University of Colorado professor, Leaf Van Boven. "We never really experience debt in the here and now."

Under that fallacy, some consumers blindly continue to build more debt. "If you owe $250,000 on a house, $30,000 on a car, and have other debt from vacations, a $500 DVD player seems insignificant," Van Boven said.

Truly small items are invisible.

Tolerance for debt grows with each succeeding generation, reflecting how people grew up and how they pay today - by cash or credit.

Saving money is ingrained in older Americans, children of the Great Depression and World War II. They are much less likely to hold credit cards, said consumer behavior expert Britt Beemer of America's Research Group in Charleston, S.C. "Baby boomers grew up in a period when they could have it all, and they've spent like they have it all," he said.

How Much does it really cost to say charge it?

20 days worth of grande vanilla lattes…
Price: $66 charged at 18 percent interest
Minimum payment: 2.5 percent of total
Interest paid: $4.02 over 8 months
Total paid: $70.02

2004 Taurus SE Wagon…
Price: $22,310 at 5.33% for 5 years
Monthly payment: $426.15
Interest paid: $3,258.82
Total paid: $25,568.82

Dell notebook computer…
Price: $1,199 charged at 18 % interest
Minimum payment: 2.5 percent of total
Interest paid: $1,413 at monthly min.
Total paid: $2,612

Average holiday spending…
Price: $672 charged at 18 percent interest
Minimum payment: 2.5 percent of total
Interest paid: $623 at monthly minimum
Total paid: $1,295

"What's troubling is that people are using their credit card to buy their $3 latte, and later using the equity in their home to pay off the credit card."