Following last Friday’s report that the national unemployment rate dropped from over 10% to 9.7% in January, recent news explains that the positive signs of a lower unemployment rate doesn’t offset another problem of the distressed job market: the average duration of unemployment reached an all-time high of 30.2 weeks, or 7 1/2 months– the highest since 1948.

CNN Money reports on the difficulty to secure a job as more than six job seekers compete for every single job opening, as well as the risk that the extended unemployment period means unemployment benefits will expire for many after the usual 26 week period (before federal extensions kick in).

Get back on your feet as soon as possible with today’s roundup full of personal finance tips, job help, and credit score advice.

Personal Finance News

• MarketWatch offers job-seekers valuable advice on first aid for your resume.
• Want more help getting your dream job? “Get Your Cover Letter Template!“, exclaims SquawkFox.
• Cheerios, laundry detergent, and batteries: what do they have in common? They all made Mainstreet’s list of The Best Stuff to Buy In Bulk. Check out just how much money you can save.
• Want more help cutting down on spending? Follow Million Dollar Journey’s example to see how to save over 70% on your grocery bill.
• Everyone wants to know how to invest with less than $1000; Realm Of Prosperity gives worthwhile advice.

Credit Report & Credit Scores News

• CNN Money reports that consumer credit falls for the 11th straight month.
• How to get a free credit report blogs My Dollar Plan.
• Bankrate.com answers a question on how to deal with a foreclosure stain on your credit report.
• Credit score questions answered by The Chicago Tribune. Do you know how the number of credit cards you have relates to your credit score?
• MoneyBlogger gives advice on what to do with a 500 credit score.

Valentine’s Day is just around the corner, and in our current recession, consumers are not planning on putting Cupid on a budget this year. A recent National Retail Foundation poll found that shoppers plan to spend $103 on Valentine’s Day this year, up 50 cents from last year.

Is it possible to celebrate love and frugality this Valentine’s Day by showing without breaking your budget? We say YES! Whether you are the creative type, an old-school romantic, or an anti-Valentine’s Day activist, here’s a top list for how to spoil your loved ones—friends, family, or sweetheart—in wallet-friendly ways:

Creative On A Budget

Remember the old adage: it’s the thought that counts! Grab some supplies around the house and start expressing yourself.

1. Skip the flowers and send a bouquet of balloons instead. Get brownie points by putting a little love note or small trinket, like candy or a photograph, in each balloon before blowing it up. Its fun to “unwrap” and loved ones will have more than just wilted flowers to remember you by.
2. Make your own chocolate-dipped strawberries—or pretzels or cheesecake!—and distribute in the office or neighborhood, and you’ll be everyone’s favorite valentine. Baked goodies and homemade cards are also a good, inexpensive idea.
3. Have a Skype or videochat date with a loved one far from home. Feel extra close by doing the same activity together like having dinner or watching the same show.

For a Thrifty Anti-Valentine’s Day

Want to take a stand again this commercial holiday? Grab friends and indulge in some fun, relatively inexpensive activities especially since you’re splitting costs:

1. Throw an Anti-Valentine’s Day Singles party with your pals by having a potluck with beer, pizza, loud music, and watch not-so-romantic shows like reality TV or any movie by Quentin Tarantino.
2. Since Valentine’s Day is on a Sunday, spend the weekend doing fun group activities like hiking, paintballing, pottery-painting, karaoke-singing, go-kart racing, a cheap nearby roadtrip, or hosting a video game tournament.
3. Skip Paris and plan a “staycation” with buddies! Rediscover your city by doing something on your local list of things to-do, like ditching the car and walking or biking the area, or checking out the local culture scene of concerts, museums, art, or spoken word readings.

The Frugal Old-School Romantic

You can’t help it; you go for the flowers, card, candy and the whole nine yards. Here’s how to stay traditional on the cheap side:

1. Revive the lost tradition of the mix tape in high-tech fashion by nabbing your loved one’s mp3 player and putting a playlist of heartfelt songs, or make a music playlist online so they can access it anywhere from their home computer to their workplace.
2. Make a digital scrapbook of fond memories and pictures with photo-sharing web sites like SnapFish or ShutterFly. Throw in captions and silly photos, and distribute to friends and family for a gift everyone can share and even contribute to.
3. Since Valentine’s falls on a Sunday, why not have a cozy Valentine’s Day brunch instead of a fancy dinner out? This Valentine’s morning feast is both heartfelt and hearty, and way more economical than eating at a restaurant. For more recipes, check out The LoveBite. (If you really have your heart set on a night on the town, check out gift certificates at Restaurant.com to get gourmet at a discount.)

Take extra steps to stay financially fit through Valentine’s by paying cash, not charging anything on credit, splitting costs, and discussing with your significant other what a reasonable budget is for both of you—maybe even agreeing to go spend-free together. Valentine’s Day is all in the details and not necessarily about going retail.

Good news on the job front! The national unemployment rate dips to 9.7 percent from last year’s 10 percent. The unemployment report still shows that the job crisis remains deep and will likely not return to any normal level in the next three to four years. The unexpected decline offers us all hope that employers could start adding more jobs this year.

For your fix of news and information on the housing market, plus updates on Credit Karma from the media, today’s roundup has you covered.

Credit Karma in the News

• The View From The Bay television show mentions Credit Karma in the program 5 Steps to Healthier Finances!
• 3 ways to get a free credit report with no hidden fees at CreditShout features Credit Karma as an easy way to get started on improving your score.
• The Kansas City Star suggests, “Check this KC measurement—how much credit card debt are you carrying?“
• Press Enterprise talks about Credit Karma as one of its recommended online tools to help maintain a good credit history.

Home & Mortgage News

• Kiplinger answers a question about the homeowner tax credit and filing bankruptcy in, “A home buyer credit meets foreclosure.”
• Speaking of the homeowner tax credit, My Dollar Plan outlines simple steps on how to claim your home buyer tax credit.
• MoneyNing answers the question, should I pay off my mortgage, or have one at all?
• If you are indeed planning to take out a mortgage, Foreigner’s Finances offers some tips on which mortgage loan is right for you.
• Homeowners have more than interest rates to consider at tax time, reports The Washington Post.

This Week’s Mortgage Rates

According to Bankrate.com, the four-week streak of declining mortgage rates broke this week as the average 30-year fixed, 15-year fixed, and 5/1 adjustable rate mortgages rose. Despite the upbeat news of economic growth entering 2010, personal income and consumer spending in December, and a stronger-than-expected manufacturing index for January, mortgage rates were bumped up only slightly. Mortgage survey results:

Bankrate’s recent survey results:

• 30-year fixed: 5.15% — up from 5.13% last week (avg points: 0.49)
• 15-year fixed: 4.55% — up from 4.54% last week (avg points: 0.45)
• 5/1 ARM: 4.56% — up from 4.53% last week (avg points: 0.38)

In order to balance your budget, you’ve stopped eating out as much, started using public transportation to commute, made your home more energy-efficient, and trimmed your household expenses down to the bone. But as unemployment remains high, credit becoming scarcer, and the overall instability of the economy has persuaded more people to cut down spending, there is another, often overlooked way to fatten up your finances: make money.

With a multitude of “how to earn money” blog posts out there, this one is focused on ways to earn extra money quickly without too much commitment and in one weekend. Of course, you just might get hooked on the extra cash flow and keep it up every Saturday and Sunday from now on.

1. Work a temporary job – Check out your local craigslist for any odd jobs or gigs in your area that can earn you money in just a few hours. People post babysitting gigs, event set-up, gardening or household services, and other one-time tasks that typically compensate fairly. Depending on whether you like to do manual labor like moving boxes or creative gigs like cooking a gourmet dinner, something is bound to fit your skill set. [Please be alert and watchful when it comes to sites like craigslist; safety is always a bigger priority than making money, so take the utmost precaution].
2. Sell your stuff– There is likely to be something in your home that is in good condition or unused and has relative worth. Whether its old records, baseball cards, Beanie Babies, or stamps, spend a day listing it on eBay and you’ll get sales over the next few weeks. Or with spring cleaning around the corner, clean out your closet and take unwanted items to a consignment store like Goodwill or Crossroads Trading Co. Take a moment to do a mental checklist of what you can put up for sale. If you have a lot of knick knacks around the house, have a garage sale. If you have a plethora of leftover textbooks from college or don’t mind selling from your personal library, take an afternoon to go online to a book-selling site like eBay’s Half.com and list your books, or drop it off at a local second-hand bookstore.
3. Do online surveys – If you are online often enough, you might as well get paid for it. Spend a few hours participating in an online survey and you’ll have your opinion counted and earn a few bucks too. Check out Free Paid Surveys or Opinion Place. Another, more in-person version of this is to do focus groups, which you can check out at FindFocusGroups.
4. Make money on a hobby – Bake, take pictures, or love writing? You could spend a weekend making money on what you love to do most. Have a bake sale at your local church or community center, sell your photos to stock agencies like Shutterstock.com where you earn 25 cents every time someone downloads your photo, or do some freelance writing at Elance.com.

Think to yourself, what are you doing this weekend and can it earn you money like these ways can? Take up the challenge to cancel your weekend plans, pick one of the following suggestions, and see how you like a little extra money in your wallet come Monday.

“The CARD Act finally protects consumers against the credit card industry’s most abusive practices: Yes AND no,” writes The Washington Post. The Post debunks five myths about America’s credit card debt, discussing how credit card legislation won’t magically fix everything, and even while a credit-scarce economy has pushed cardholders to switch to debit, America is still largely a plastic-carrying consumer society. For more credit card news and debt help, including blogs on more effective debt-reduction strategies, this week’s roundup has it all.

Credit Card News

• WiseBread gives great tips on how to avoid getting your credit card canceled.
• Balance transfer credit cards can save you money, blogs Personal Finance Analyst.
• Stream Consumerism Commentary’s podcast on the Credit Card Act of 2009 to learn more about the credit card reforms effective this February.
• How do I pick the best credit card? Get Rich Slowly blog finds some answers.
• Debt Free Adventure discusses credit card minimum payment disclosures and whether or not they are helpful.

Debt News

• Read great advice from Debt Tips on 5 warning signs that you should avoid a debt settlement company.
• The Digerati Life blog points out that most people in debt don’t realize they have poor spending habits. Check out this blog on how to identify a shopping addiction.
• Try Bargineering’s debt reduction plan through stricter budgeting in how to build a zero-based budget.
• “I’ll never have to keep a budget again,” and 5 more assumptions about debt-free living, brought to you by WiseBread.
• Being Frugal checks in: how are your debt repayment goals coming?

Dear Credit Karma,
I have a credit score of 613 after filing bankruptcy a year ago. What is the best secured credit card to start with?

The Public Savings Bank Secured Visa Card is a great first step to rebuilding your credit and also guarantees approval because there is no credit score or income requirement. Like most secured cards, the Public Savings Card requires an upfront security deposit of a minimum $200 and up to $1,500, which also determines your credit limit. Secured cards reports to all 3 major credit bureaus just like unsecured credit cards, but should you ever default on a payment, the minimum will be deducted from your security deposit so you can continue to build a positive credit history.

What sets this card apart from other secured cards is that it has no annual fee and just requires a one-time activation fee of $79, while almost all unsecured cards have a recurring annual fee. Also, penalty for a late payment or for going over your credit limit is not as steep as other secured cards, and the 11.24% APR is a low interest rate relative to what is generally offered to poor credit borrowers.

Another big bonus of choosing this card is its introductory offer of 0% interest on purchases for the first 6 months, which is unique to the unsecured credit card market; just make sure you pay off all the purchases charged interest-free for the first six months, or else you’ll end up paying interest on your remaining balance once the offer period ends. With this card, you’ll be on your way to raising your credit score high enough to apply for an unsecured credit card with confidence..

Dear Credit Karma,
Should I get a Target Visa or Target Credit Card which one do think I should get and what do you think about them?

Which credit card you apply for depends primarily on where you will be using your credit card. The crucial difference between the two credit cards is that the Target Visa card is accepted everywhere Visa is accepted, while the Target Credit Card can only be used at Target stores and on Target.com, which means you only utilize rewards and benefits when you shop at Target. While both cards offer the same rewards program, the Visa card has additional online bill pay services and Visa benefits unique to the Visa program. The Target website states that in the application process, applicants will first be considered for the Target Visa, and if they do not qualify, will be considered for the Target Credit Card.

Also, keep in mind that both cards have the kind of steep APR that retail cards are notorious for: 25.24% APR for the Target Credit Card and 23.24% APR for the Target Visa. Ultimately, you should consider whether either card will really benefit you. Do the rewards outweigh the potential interest rate charges? If you shop at Target enough to earn the 10% off shopping day and will take advantage of it, go for it. If you think you will carry a balance month to month or won’t accumulate enough rewards points to get the discount, then you’re better off going for a non-retail credit card with better benefits and a more worthwhile rewards program.

Submit a question now, and maybe Credit Karma will answer your question on our next Q & A blog post!

The next wave of rewards card programs is flooding the market, offering what’s termed “retirement rewards”. These rewards offer consumers the opportunity to turn points into cash to be invested in their retirement fund. The more familiar, traditional rewards programs of airline miles and cashback offers will have to move over for the innovative programs issuers have been rolling out to interest new customers and keep loyal ones: programs to donate to charities, pay off taxes, manage finances, and now, build up a nest egg.

As you are credit card shopping for retirement rewards, it’s crucial that you go beyond the following chart and make sure to read the fine print for each card and understand the fees and services before applying. Most of the following cards require no annual fee and some have no limit to how many points you can earn and redeem. Also, all cards, except for the NestEggz Visa, require that consumers have a retirement account at the participating financial company in order to redeem rewards for retirement dollars.

If using your credit card rewards to invest in your retirement makes more sense to you than getting airline or hotel upgrades, it’s a good idea to check one of these cards out. Choose a card that works for you and let your everyday spending help you earn and save more towards your retirement goals.

“Top Ten Funny Money Saving Tips” from Almost Frugal blog shows consumers ways to save money in unexpected ways, such as borrowing toilet paper from work, snacking on food samples at grocery stores, freezing your credit cards, and raiding lost and found bins. Also, catch up on your investments as stocks bouncing back with better-than-expected earnings.

Check out more financial help and credit advice with the following roundup:

Personal Finance News

• CNN Money offers good financial advice on any budget whether you have $3,000 to spend on a financial advisor or want your financial help for free.
• For totally free budgeting advice, take advantage of banks’ online financial tools that help consumers manage their money better, reports MSNBC.
• How a car loan sinks your finances, by Mainstreet, makes a case for why taking out a car loan is a very expensive personal financial mistake you should avoid.
• Here’s another loan-related posting on how to appy for a loan at a peer to peer lender, blogged by The Digerati Life.
• Do you know your money ratios? CashMoneyLife goes over 8 simple ratios to guide you to financial security.

Credit Report & Credit Scores News

• Watch KVUE’s news broadcast discussing the factors and actions that help to determine credit scores.
• Auto insurance premiums are tied to credit score, reports WalletPop.
• Personal finance columnist Liz Weston answers a reader’s question on how to make up for past credit mistakes.
• DoughRoller answers an often-asked reader question: ” When do negative references get removed form you credit report?”
• With this additional post to help you revitalize your credit, Consumer Reports shares its take on how to establish a credit history.

The Federal Housing Administration is undergoing major changes in 2010 to tighten lending standards, raise credit score requirements, and increase mortgage premium costs in an effort to strengthen the agency’s weakened financial state and reform the lax lending practices that contributed to the housing crisis.

The FHA does not provide mortgage loans itself, but offers government-backed insurance against defaults for mortgages issued by approved lenders. FHA loans appeal to new and first-time homebuyers because they require down payments of 3.5% of the home’s purchase price, in comparison to the industry standard of 20% or more. However, the agency has been criticized for backing mortgages with little or no down payments, which was the type of lending that contributed to the current wave of foreclosures. The agency is also financially strapped as more than 18% of FHA borrowers are at least one payment behind or in foreclosure compared with 14% default rate for all loans, reports USA Today.

A healthy FHA is vital for the housing market because the agency insures about 30% of new loans and is also the largest mortgage backer for first-time buyers. The following policies, effective spring and early summer this year, are designed to bring in more revenue and also reform loan underwriting:

• Mortgage-insurance premium. Borrowers must pay upfront mortgage insurance premium of 2.25% of the total loan amount, up from the current level of 1.75%. For example, if a borrower takes out a $200,000 mortgage, they would have to pay $4,500 premium rather than the current fee of $3,500. The premium is split between an up-front fee paid at closing and an on-going yearly fee. FHA officials may also increase the maximum annual premium that can be charged, pending congressional approval.
• Higher credit score. Borrowers need a minimum credit score of 580 to qualify for the FHA’s 3.5% down payment rate. Borrowers with a score lower than 580 are required to put a down payment of at least 10%. Compare this to standard lending guidelines which require at minimum of 720 to qualify. Increasing minimum credit scores will safeguard the FHA against borrower default, while still providing loans to most consumers.
• Enforcement on FHA lenders. FHA will publicly report lender-performance rankings on the HUD website and enhance monitoring of lender performance and compliance with FHA guidelines. After cracking down on 15 mortgage lenders with suspiciously high default rates for FHA loans and banning two companies from FHA’s program, this provision will increase oversight to make lenders more accountable.
• Seller concessions. Seller concessions for closing costs will be reduced from the current 6% to 3% to deter sellers from inflating a home’s appraised value, which increased the risk of borrower default.

The new rules will address risks and minimize losses in the struggling housing market, yet will also make it harder for consumers to qualify for a mortgage. Borrowers with poor credit will find the new tightened requirements could significantly impact their ability to buy a home. However, financial soundness for the FHA’s insured mortgages will prop up stable home buying, which will benefit the U.S economy as a whole in the long run.

“The Federal Housing Administration said Wednesday that it would raise down-payment requirements, boost its mortgage-insurance premiums, and tighten its loan underwriting practices in a bid to strengthen its capital reserves and remain solvent in the face of rising foreclosures and delinquencies,” reports MarketWatch.

These policy changes by the FHA address the increasing risk in the housing market, and hope to provide more security and stability for both the industry and consumers. Keep up-to-date with home and mortgage news with today’s weekly roundup, as well as some mentions of Credit Karma in the media.

Credit Karma in the News

• The Kansas City Star mentions Credit Karma in, “Kids & Money - free web sites give you credit history, money management tools.”
• Credit Karma contributes interesting information regarding the current credit card climate in the Philly.com post, “Steps you can take to build credit, get a card.”
• WalletPop highlights Credit Karma’s Credit Score Simulator as a useful tool in understanding the new credit reality: scores must be higher to get the best rates.
• Credit Karma’s Credit Score Climate Report is featured in Bankrate’s weekly survey, “National credit card rates.”
• Cute Geek blog names Credit Karma as her Favorite Website of the Week!

Home & Mortagage News

• Existing home sales sink 16.7% reports CNN Money.
• Ever wondered which is right for you, a 15 year versus a 30 year mortgage? Five Cent Nickel helps you figure it out.
• The New York Times provides a guide to the new good faith estimate to help you navigate the new mortgage forms.
• How to calculate mortgage payments for a home, blogs Moolanomy Personal Finance.
• Consumerism Commentary breaks it down: how to claim the new home buyer tax credit on 2009 tax returns.

This Week’s Mortgage Rates

According to Bankrate.com’s weekly national survey, 30-year fixed mortgage rate fell for the fourth consecutive week to 5.13%. 2010 is off to a good start for mortgage shoppers, as rates have fallen each week in the new year. Despite market jitters due to Obama’s proposal on the separation of trading from banking activity and the Fed potentially wrapping up mortgage bond purchases soon, mortgage rates are moving lower although economic shifts may eventually push mortgage rates high again. Mortgage survey results:

Bankrate’s recent survey results:

• 30-year fixed: 5.13% — down from 5.15% last week (avg points: 0.49)
• 15-year fixed: 4.54% — down from 4.56% last week (avg points: 0.43)
• 5/1 ARM: 4.54% — down from 4.63% last week (avg points: 0.38)