With tightened mortgage restrictions, many need to push up their FICO score just to obtain a home. Researchers have recently analyzed interest rate quotes using the real estate website Zillow.com. Alarmingly, their findings show that those with credit scores of 620 or below are likely unable to obtain a mortgage at all in today’s market. According to reports, provided by FICO, over 25% of all American adults fall into this category. With a quarter of the population having virtually no access to legitimate mortgage loans, the services of credit repair specialists are absolutely crucial while banks continue to protect themselves from risk.

Another quarter of the US population is represented by FICO scores between 620 and 720. According to experts, records kept by Zillow.com show that the rates for these individuals are less than optimal as well. Although these individuals may be able to obtain a mortgage, they’ll end up paying much more than those with great credit over the life of their loan.

In the past, raising one’s score above the so called “magic score” of 720, would have been enough to score you a lower interest rate when shopping for a mortgage, saving you significantly over the life of the loan. Today, exports report, that even just 720 may not be getting you the very best interest rate. These current findings show just how important picking up every point you can will pay off.

In most cases, you’ll want to get your score above 720 to get the best rates possible. Experts estimate that for each 20 point increase in FICO score, the average interest rate drops by at least 0.12 percent. This percentage translates into over 6,000 worth of savings over the course of an average home loan (for a $300,000 with 20% down).

If you’re among the many who has been working hard to boost your credit score and repair your credit, going through the motions on your own, may not be yielding you all the results you may have hoped for. If you’re trying to raise your score as high as possible, you’re certainly in good company. When you’re working on obtaining a mortgage, contacting a credit repair specialist right away can help.

Credit card issuers offer rewards as incentives to get people to sign up for and use their cards. They’re a great way for them to target specific demographics, too. There are several cards that offer frequent flier miles, some have cash back rewards programs, some give free gas or other perks for using their cards. But be sure to read exactly how the rewards programs work so you can make the most of them, instead of letting them make the most of you.

If you don’t pay off your balance each month, you may not be able to really take advantage of the rewards. Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling said in a Smart Money article, “What people tend to do with rewards cards is charge everything,” she says. “But if you’re a person who carries a balance month to month don’t consider [such a card] because you’ll be paying interest on it and probably not gaining the rewards you should.”

Some of these cards lure you in with their attractive rewards packages, but make sure they don’t have high annual fees or interest rates that might make the rewards less rewarding. In the long run, it may end up being less expensive to just pay for the flights or filling up your tank. Credit.com has a list of rewards cards and with their interest rates so you can compare.

For travel rewards, be sure to look into any blackout dates when you can’t use your rewards to fly. If you’ve been trying to save up to travel during Christmas, but they won’t let you, you don’t want to have to spend extra money on additional travel some other time of year, just so you can use your miles. If they offer cash back, see if there’s a limit on the amount you can earn. No point using the card more than you need to, if there’s little benefit.

As with anything, if something seems too good to be true, it probably is. Knowledge is power!

You’ve just applied for a mortgage or auto loan and your lender comes back with a three-digit number that summarizes your credit worthiness and you have no clue what that number really means. What is the difference between a 540, a 670 and a 780? If you’re not familiar with credit scores then these seemingly random numbers can make it difficult to determine where you stand. And in today’s difficult economic environment, you need every point you can get. In this article we’re going to find out exactly what these numbers mean to lenders – and to you.

*Range above based on the FICO® credit score, which is used by most lenders.
Outstanding: 800+
If your credit score is over 800 then you’re pretty much the best of the best as far as the lending and insurance worlds are concerned. With scores this high, you represent an outstanding credit risk, almost non-existent, and you’ll qualify for the best deals. Consumers that score in the 800+ range typically have a long credit history with multiple credit accounts that have been paid on time for years. There are no derogatory records such as collections, bankruptcies or charge-off accounts and very little credit card debt. These people are almost immune to the credit crisis.Very Good: 750 – 799
If your credit score is between the 750 – 799 range, lenders will view you as a very low credit risk and you’ll qualify for some of the lowest lending rates available. You manage your credit responsibly by paying your bills on time and keeping your credit balances very low in relation to the credit limits.