This blog has mentioned enough about changing credit card terms that canceling your credit card might seem like the easiest way to dodge recent hiked up interest rates, cut credit limits, and new fees. But before you take scissors to your MasterCard, read ahead on for what to consider before canceling your card :

1. Right off the bat: don’t cancel your credit card. Why? Depending on your total available credit, canceling your credit card can negatively impact your credit score. Also, make sure to never cancel you oldest credit card. It anchors your credit history, so canceling will shorten your credit history and heavily damage your credit score.
2. Instead, keep your cards active—just pay responsibly. The key to a good credit score is on-time payments and active use of your credit. If you just stop using your credit card all-together to avoid any late fees or charges, your issuer might close your card and consequently lower your credit score. Instead, use your credit cards to make small purchases on them that you pay off ON TIME and IN FULL every month. That way, you can show responsible credit use and avoid any interest charges or additional fees.
3. …except if you have an annual fee. The only exceptions to the “don’t close your credit card” rule is a card with an annual fee. If you don’t plan to use a credit card that has a steep annual fee, its probably worth it to close your card and just take the hit to your credit score rather than spending needlessly on an annual fee.
4. If your interest rate jumped or you have extra charges, negotiate. You can negotiate with your issuer to lower your interest rate or opt out of a fee. Some banks may also offer a promotional program to defer or get a good rate on your current balance. Cardholders with excellent credit scores and great payment history have a good shot at this because issuers are more likely to compromise with you rather than lose a good customer.
5. Don’t add any more credit cards! The danger in owning more credit cards is that the more access to credit you have, the more you are tempted to overspend credit without the funds to back it up. Stick to credit cards with low interest rates and no annual fee, and ignore the temptation to open a new credit card just for a rewards program, a retail discount, or that really cool t-shirt you just have to have.
6. Build up your credit score! Build your credit history and be mindful of your credit score. For example, paying down your credit card debt rather than closing it all together can actually help your credit score. Even if you don’t have the best credit card right now or are still in credit card debt, a better credit score down the road can qualify you for better credit cards with lower interest.

At Credit Karma Blog, what goes around comes around… So what do you think about this post? Agree, disagree, or have something more to say? We’d love to hear your reactions!

SmartMoney suggests a surprisingly delicious indicator of global economic recovery: McDonald restaurants. The fast food chain reports that an increase in overseas store sales–from up-scale districts of Paris to emerging economies in developing countries–indicates global expansion is a sign of an improving global economy. While you can be the judge on whether or not orders of burgers with fries is the new barometer for global economic health, your credit score is still the status quo on gauging your own financial health. Check out tips on credit reports and personal finance news to keep your credit score from getting swallowed by recession.

Personal Finance News

• MSNBC explores 4 life-changing events that impact your finances.
• Best online bank: savings and checking accounts, brought to you by Money Blue Book.
• Frugal Dads suggest you consider a few things before you relocate to end unemployment.
• Kiplinger helps you avoid an empty piggybank this season with 10 ways to fatten your wallet on Black Friday.
• Travel hacking for noobs from Man vs Debt.
• Can you believe it? Mainstreet claims that retail therapy is cheaper than ever.

Credit Report & Credit Score News

• Cash Money Life points out the difference between credit score and credit report.
• Avoid the top credit card mistakes that hurt credit scores says WBZ.
• ABCNews gives you the credit score don’ts to keep your score from dropping.
• Confused about credit? The Clarion Online gives a good, simple overview of how to navigate the credit matrix.
• How to get credit cards with a 550 credit score– advice from Moneyblogger.

Saving money is a tricky business in our economic climate– credit is still tight, debts are high, and paychecks go straight to bills and necessary expenses with not much left over for a rainy day fund. This extra-big roundup has more than 50 ways to help you cut back on spending so you can start saving up more. Isnt’ it about time to start saving money for yourself and your future, now?

Personal Finance News

• Daily Finance makes a good point: Its the end of the recession as we know it. Why don’t we feel fine?
• Money Ning sets you straight with 3 easy steps to determine your financial priorities.
• How disposable is your money? asks Almost Frugal.
• Best way to invest $1,000 right now writes MSN Money.
• Want even more tips on investing? Read The Digerati Life blog, Where to invest extra cash and savings today.
• Gather Little By Little suggests 10 small ways to save money that make a big difference.
• 10 tricks for staying warm this winder without huge energy bills straight from The Simple Dollar.
• If you want to cut back on auto insurance, follow Saving to Invest’s 5 things to look for in getting low-cost auto insurance rates.
• Paying too much at the pump? SmartMoney suggests 5 ways to cut down on gas costs.
• 3 ways to save money on health insurance from CNNMoney.
• If you just can’t help it for the holidays, SmartMoney shows you how to splurge on a budget.
• Smart year-end tax moves to read before the new year! From Wall Street Journal.

Credit Reports & Credit Scores News

• Tips from Liz Weston on how teenagers can build credit.
• Consumer credit falls for 8th month reports CNNmoney.com.
• Your credit score can affect how to get the best deal on a new car; read ahead at SmartMoney.
• Ever wondered why aren’t credit scores free? Walletpop has the answer.
• NBC Bay Area makes credit health as easy as 1, 2, 3, 4.

Headlines are unanimous: when it comes to the recession, we are… confused. “Recession over? Sure doesn’t feel like it“, scoffs MSNBC, while The Wall Street Journal breathes a sigh of relief thanks to “A Recovery At Last.” Skepticism and optimism on both sides of the media circus are pulling the public back and forth.

But how does the average consumer– YOU –feel about the state of our economy? Does it feel like we’re finally steering clear of recession, or are the signs of recovery everyone has been talking about been passing you by? Throw in your two cents and comment back on what you think!

Personal Finance News

• CNN Money gives some tips on free cash for your business.
• Here’s a fun (and useful!) post from The Simple Dollar: 14 ways a notebook in your pocket can save you money.
• Find your financial style — and its pitfalls, writes The Wall Street Journal.
• Moolanomy offers advice on what to do with a financial windfall.
• Need help teaching your kids about personal finance? Check out The Chicago Tribune’s Financial games: it can pay to play.
• 11 ways to save money on groceries blogs My Dollar Plan.

Credit Reports & Credit Scores News

• The San Francisco Chronicle clears up confusion on credit scores.
• What is in a credit report? asks Business Finance.
• Let’s end confusion over free credit reports writes The Dallas News.
• Financial Money Investment helps you understand where credit scores come from.
• MSN Money finds out how your credit score will affect your auto insurance in the article, “Bad credit is worse than bad driving“.
• How to improve your credit score tips from KCCI 9 News Channel.

Did you know that the U.S is about to hit its credit limit? Apparently we might be running into the government’s self-imposed $12.1 trillion dollar debt ceiling as soon as November if U.S Treasury sales keep up. Makes your current credit problems not too bad after all, huh? While Uncle Sam isn’t setting the best example right now, the following bloggers and journalists are the savvy people who can keep you on track with your financial know-how with this week’s best personal finance and credit blogs, articles, and advice.

Personal Finance News

• WiseBread shares 5 online tools to help you land a job.
• Best things to buy in the fall recommended by Generation X Finance.
• Wall Street Journal shows you how to barter for the services you need.
• 3 steps to financially preparing for disaster brought to you by Debtkid.
• Money Saving Mom blogs on stretching your dollars online with coupons and cashback.

Credit Report & Credit Score News

• Enough practice- make your credit score perfect! exclaims Doughroller.
• NewsChannel 5 reports on what to know about pre-employment credit checks.
• One simple way parents with good credit can help children build theirs from the Los Angeles Times.
• How to protect credit if canceling card, writes Press Democrat.
• Free From Broke highlights your credit score as another case for emergency savings.
• Reuters answers the question, what can consumers do to raise their credit scores?

If you’ve read your morning newspaper yet, you’ll see that the Dow’s still moving and shaking above the 10,000 mark. Now some are calling it good buzz for our economy, and others say its just a whole lot of steam. Wake up to your current financial situation in the midst of this economic turning point with some more financial food for thought.

Personal Finance

• Have you heard that bartering has become more popular amid recession? The Chicago Tribune reports.
• 10 surprising things you can turn into cash, suggests My Dollar Plan.
• MarketWatch wonders whether frugality is forever, and how that will affect our economy.
• Generation X Finance blogs on four fiscally-fit financial roadblocks.
• Learn how to save money on your household bills from Money Ning.
• Interested in how to get a loan to start a business? Kiplinger has some answers.
• Get some tips from Moolanomy’s, “Fall cleaning for you and your financials!“.
• Bible Money Matters blogs on what to do about out of control spending.

Credit Report & Credit Scores

• Underlining ‘free’ in ‘free credit report’; written by The Washington Post.
• Money Under 30 suggests eight steps to achieve credit nirvana.
• Getting a cell phone? Mind that other number: your credit score @ CreditCards.com.
• The Consumerist shares some legal uses of your credit report.
• Did you know that reduced limits could affect credit scores? The San Francisco Chronicle reports.

Lawmakers recently drafted a measure that would move up the second stage of the Credit Cardholder’s Bill of Rights Act from February 2010 up to December 2009. While the first stage of the Act went into effect in August, legislators in Capitol Hill, like knights in shining armor, are lobbying to speed up implementation of the rest of the Act’s regulations due to consumer outcry against the flurry of fees, interest rate hikes, and customer cancellations that issuers have been implementing in reaction to the impending credit card reforms.

Money Watch reports that since the passage of the CARD Act in May 2009, the nation’s largest credit card issuers have increased interest rates by 20%, slashed the credit limit of nearly one in five cardholders, arbitrarily closed accounts and canceled cards, and changed the terms and agreements of cardholders without advanced notification.

While lawmakers and outraged cardholders see these actions as issuers’ way of recouping losses from the price-gouging practices the CARD Act will soon end, issuers and banks are complaining that moving the date up to December 2009 is an impossible deadline to incorporate the sweeping reforms into their day to day operations.

The remaining provisions that would be affected by this change in timing are some of the largest protections for consumers, including:

• Fair allocation of payments, in which credit card companies must apply payment above the minimum payment to balances with the highest interest rate first. Fair allocation of payments helps consumers apply their payments to their most expensive debt.
• No more universal default or double-cycle billing
• Greater transparency of credit card agreements, which must be posted online; also, issuers must disclose the amount of interest a cardholder will have to pay and how long it will take if only minimum monthly payments are made.
• All rules that apply to cardholders under 21, which includes a need for a co-signer or proof of ability to repay credit extended in order to receive a credit card, a ban on tangible gifts offered by credit issuers on campus, and full disclosure of any “affinity agreements” between issuers and colleges.

You’ve been dreaming about it for years and you finally have the funds to make it come true—buying your first brand new car. But it’s going to take a couple steps of financial planning before you retire your old clunker from college and sit in the driver’s seat of your perfect car. Use this easy guide to the car-buying process so you know how to prepare, what to expect, and best of all, know how to get a fair deal on the car of your dreams.

First stop, the Internet: The more information you can gather before you get to the dealer, the more informed you’ll be when you purchase your fancy new car. Focus on educating yourself in three areas: how much you can afford, what vehicle you want with which options, and what a fair price range would be.

How much you can afford will depend on what car and what kind of loan you can get. Since you can’t estimate what kind of APR a lender will offer based on your credit score, you can at least check out car loan APR trends to help you discern what a reasonable rate would be. Also, calculate the monthly loan payments that is within your budget so you know what you are comfortable paying month-to-month.

Research online what kind of car options are available to you so you know what to look for when you get to the dealer and can expect how much it will cost. Go to TrueCar and select the make and model of your car and check off the options you want, down to the color and tinted windows. TrueCar will provide local data on the average price consumers are actually paying for your exact car, so you know the reasonable and accurate price to negotiate with once you get into the gauntlet with the dealer.

Second stop, the car dealership: You’ve got all the information you need, and now it’s time to go to the dealership and drive off with your car. The typical car-buying process goes like this: you’ll take the car you want on a test drive to be sure it’s what you want, put your TrueCar price report to work haggling with the salesman over what you think is a fair deal, the dealer will run your credit report and use your credit score to determine what financing options are available to you, you’ll haggle more over pricing, and then the final blow—you either sign the paperwork and drive away, or you walk away. Be warned, the dealer will still try and sell you warranty packages and car accessories right up until you drive off the lot.

Third stop, the comfort of your driveway: Congratulations! Not only have you navigated the chaotic process of buying a new car, but you made it home safely in your dream car. Now it’s all about maintenance and proper upkeep. Don’t forget to get car insurance on your vehicle right away, change the oil every 3000 miles, get a car wash every now and then, and pay your loan payments on-time, and you’ll avoid any speed bumps along the ever-winding road of car-owning freedom.

Bringing a sense of Zen to your life requires patience, balance—and good credit. At least that’s the idea behind newly launched zendough, an online financial service that seeks to bring a “holistic approach” to credit management to help consumers attain happy financial enlightenment. From affecting your approval for a loan to your mental stress over debt, credit is truly the foundation of your financial health and is definitely worth meditating on. Zendough re-imagines credit reports as the way to steer consumers towards better overall financial management.

After signing up for a free trial (zendough is otherwise $14.95 a month), the simple menu of My Zendough immediately brings me a little peace of mind. “The Six Principles” –payment history, credit balances, recent credit, utilization, depth of credit, available credit—that affect my credit score are simply organized and easy to follow in order to illuminate my credit report and credit history. With zendough, that’s just the start of your new financial path.

Other highlights of zendough include:

• Zendough calculates your Vantage credit score based off of credit reports from all three major credit bureaus. You can even view a side-by-side comparison of your credit report from each bureau to check for any inaccuracies that could be affecting your credit score. Zendough can also help you dispute any errors that you find with any bureau’s report right from the service.
• The summary of all your credit lines, including balances and payment of each account, also comes with a debt-to-income ratio calculator so you can graph the difference between your monthly income and how much you pay for your debts. Remember, you want to achieve a low debt-to-income ratio because it shows lenders your ability to repay debts.
• Worried about Identity Theft? Zendough has you covered with an assessment of your Identity Risk and Identity Restoration Services, which comes with a personalized zendough Case Manager to work with you, should the worst happen. Zendough members are covered up to $25,000 in case of identity theft.
• One of my favorite parts about zendough is the My Path feature, which helps you realize your long-term financial goals with the help of tips and resources to boost your credit preparedness. I can choose from aspirations like “Start a Family” or “Save For College”, and zendough gives me a to-do list and some encouraging tips to help me stay on My Path to a healthy credit future.

While zendough is a great way to plan for your financial future, it is only a guide and a way to provide you the opportunity to take more control of your credit. You are still your own credit master here, but zendough can be there as your spiritual and financial guide to reaching credit nirvana.

Looks like everyone got the memo: it’s cool to save money. Whether its businesses offering refunds, the government giving consumers a break, or credit card companies taking it easier on cardholders, this crop of news is making it easier for consumers to keep up their savings now and well into the holiday season. Oh happy day.

Personal Finance

• Recession likely over but slog ahead reports CNNMoney.
• The Simple Dollar retells the story of the beginning of the allowance.
• Mighty Bargain Hunter blogs that four out of five people want to save money on their car insurance.
• Follow SmartMoney’s 3 ways to thwart ID thieves at the mall.
• Curious about community property states & what it means? Bargaineering has you covered.
• Will GM really give me a refund? MainStreet dishes the truth.

Credit Scores and Reports

• Los Angeles Times reports mortgage problems are walloping Americans’ credit scores.
• Credit is a tool not to be scared of declares My Two Dollars.
• Bankrate.com answers whether new credit scoring model can hurt you score.
• MSNBC asks how does your business rate.

Credit Cards

• Did you know credit card losses climb with jobless rate in Aug? Find out more at Reuters.
• The Wall Street Journal writes, new Bank of America card touts simplicity, fixed rate.
• The Washington Post explores more on credit card firms offering simpler deals ahead of law.

Mortgage

• Find out the seven new rules for the first-time home buyer at the New York Times.
• Money Under 30 asks what percentage of income can you afford for mortgage payments?
• Tax credit puts pressure on first-time home buyers reports the Chicago Tribune.
• Kiplinger gives you 5 reasons to buy a home now.
• IRS to mine home loan deduction data to snag tax cheats reports The Wall Street Journal.
• CNNMoney writes some clouds in housing report gain.

Debt

• Wisebread’s blogs that debt-free living IS attainable: if you want it, you can have it.
• Almost Frugal encourages you to eliminate debt and simplify your life.
• Fivecentnickel asks why do you want to be debt free?

Credit Karma

• Credit card debt dips slightly in Kansas; up in Missouri, reports Kansas City’s The Star.
• Credit card all about scheduling @ DelawareOnline.
• No credit history? Prepare for an uphill climb to auto, home financing @ Money Under 30.
• Small Biz Essentials blogs about free credit report and credit score online sites.