When President Obama signed H.R.3548 – Worker, Homeownership, and Business Assistance Act of 2009, popularly known as the Home Buyer Tax Credit, he effectively extended the federal tax credit for first-time home buyers originally set to expire November 30, 2009 to April 30, 2009, and also extended unemployment benefits to bring relief to the current 10.2% of Americans looking for work. Here’s a closer look at the bill and how consumers will be benefitting from it:

HOME BUYER TAX CREDIT

1. For whom?
   First-time home buyers – You qualify if you have not owned a home in the last 3 years, and must purchase your new home as the principal residence.
   
   Repeat home buyers – You have owned and lived in a home for the last 5 consecutive years at any time during the eight years before your new home purchase.
2. Deadline
   You must purchase the home or have it under contract by April 30, 2010, and close by June 30, 2010.
3. Benefits
   The first-time homebuyer tax credit applies to 10% of the purchase price up to a maximum of $8,000. The repeat homebuyer tax credit likewise applies to 10% of the purchase price up to $6,500.
4. Qualifications for both tax credits
   For homes purchased after Nov. 6, price of the house cannot exceed $800,000. Prior to purchasing a home before Nov. 6 under the First-Time Home Buyer tax credit, there was no price limit.
   
   New, higher income limits for both the first-time and repeat homebuyer credit apply to homes purchased after Friday, Nov. 6, and are $125,000 to $145,000 for individuals and $225,000-$245,000 for joint filers. For homes purchased before Nov. 6, the original income limits for the first-time home buyer credit are between $75,000-$95,000 for individuals, and between $150,00-$170,000 combined income for couples or joint filers.
   
   You must live in your newly-purchased home for at least 3 years, or 36 months, or you will have to repay the entire credit (certain exceptions for military personnel or people who pass away).
5. Fraud protection
   Due to the federal investigations of fraud under the first-time home buyer tax credit, taxpayers will now be required to provide documentation proving they purchased a home and taxpayers must be at least 18 years old to claim the credit.

EXTENSION ON EMERGENCY UNEMPLOYEMENT COMPENSATION

1. For whom?
   For workers unemployed for an extended period of time and have exhausted regular unemployment benefits that are set to expire before the end of this year.
2. Benefits
   Provides further temporary availability of certain additional emergency unemployment compensation to workers. Unemployed workers are guaranteed a maximum 14 more weeks of unemployment aid, while Congress is working to pass another law to grant an additional 6 weeks—for a totally of 20 weeks—to workers in high-unemployment states where jobless rate is above 8.5%.
3. Qualifications
   Details of unemployment aid program differ state to state although there are federal guidelines; check the level of benefits and eligibility your state allows.
   
   Instead of the usual 26 weeks of unemployment compensation, Congress has extended benefits four times due to the prolonged period of unemployment; with this most recent extension, the maximum length of time an unemployed worker can get benefits in some states to 99 weeks, or nearly 2 years.
   In general to qualify, workers must meet minimum requirements for wages earned or time working during the “base period”, which is the first four out of the last five calendar quarters before your claim is filed.
   
   You must be unemployed due to no fault of your own.
4. Tax cuts for businesses
   An additional provision allows businesses of all sizes, hit hard by the boom-and-bust economy of the past years, to get a reduced tax cut to prevent businesses from laying off workers or closing their doors. Businesses can extend the “net-operating-loss carryback” period from two to five years, which allows them to apply losses sustained in 2008 and 2009 against taxes on profits paid in earlier years. The homebuilding industry is expected to benefit generously from this provision by offsetting their recent losses against profits when they were benefiting from the housing boom.
5. For more information on filing an unemployment claim, head to the Department of Labor.

People with good and even great credit can, at times, find themselves in a bad financial situation. Whether it’s a home loan gone upside down, unemployment lasting longer than expected, or medical bills piling up from a recent accident, the unexpected can take control of your financial plan and often your credit score. While there is no simple cure, here are a couple tips to keep in mind when you face some of the more common financial emergencies.

1. For many, purchasing a new house meant an opportunity to make money by watching their home value blossom. Due to risky loans and low or zero down payment requirements, many now find themselves upside down on their home loan, owing more on their mortgage loan than the home could sell for in the market. Walking out on the mortgage may seem like a simple solution, but the foreclosure on your credit report will have significant impact on your credit score for several years to come. If you can continue to make your monthly mortgage payments, try to stick with it. Now that many of the speculators and real estate investors have pulled out of the market, there is some stabilization in home prices and increases in home purchase volume.
2. Divorce is never easy on the heart or pocketbook, but oftentimes it’s bad for your credit health as well. An important part of divorce proceedings is making sure your name is removed as an accountholder on any mortgage, credit card, loan, or even banking account that you will not be responsible for going forward with. While closing old credit cards will definitely affect your credit score, it’s better than leaving your name on the accounts and the risk that your ex-spouse will have late payments, default, or have balances charged off – all of which will affect your credit if your name is still on the account. Take the opportunity to open new credit cards and banking relationships so you are in control of your credit health and once again standing strong and independent.
3. With unemployment lasting on average of over 25 weeks, many are finding their emergency funds running dry. Don’t give a credit card issuer any reason to cancel the card or reduce your limit; use your credit regularly and wisely if you find yourself unemployed. Credit cards can become the lifeline to covering daily expenses in periods of extended unemployment.
4. It’s easy to become overwhelmed quickly when medical bills start stacking up in your mailbox. Unfortunately, they are not going to go away. The best thing you can do is get a sense of your total medical obligations and call the hospital or medical service accounts to see if you can work out a payment plan. Past due or unpaid medical bills can show up on your credit report and will negatively affect your credit score.

Financial emergencies are hard on the family, hard on your finances, but they don’t have to be hard on your credit health. Be proactive in determining the best way to protect your credit in any financial crisis; a good credit score helps you keep your credit costs to a minimum and provides you with better options and offers when you go in for a loan, a new mortgage, or new credit line when you’re ready to start rebuilding your financial life. These tips aren’t foolproof nor will they guarantee that life will be easier after a major life trauma like divorce or unemployment, but it can help you minimize the financial strain as much as possible and help your credit survive till the sun comes out tomorrow.

Forget the impeccable suit, the strong handshake, and the perfectly crafted resume—nowadays, your credit report has to be as sharp as your first impression if you want to pass that job interview with flying colors.

According to the Society for Human Resource Management, up to 50% of employers run credit checks on potential new hires. Initially, credit checks were used by financial service companies and the government as part of pre-screening for employment; however, the practice has spread across all sectors of industry and every rung of the corporate ladder.

The theory behind employers running credit checks assumes that how you manage your finances can predict your job performance and character. Employers primarily look at two key components: financial responsibility and financial stability. Companies survey your payment history, amount of debt, and other details of your credit report to judge how responsible you are with your personal finances. This glimpse into a potential employee’s past financial behavior is especially important to small businesses, where a single incident of employee fraud or on-going employee theft could be a significant risk to the business. Companies would also assess your financial stability through specific credit data like your level of debt, past issues of paying off credit cards, and even an incident or risk of bankruptcy.

There are rumblings on Capitol Hill that using credit checks to pre-screen possible employees is penalizing those attempting to work their way out of their financial troubles. Lawmakers are also looking to provide additional consumer protection as we know there are times when consumer’s financial health takes a turn for the worse for reasons beyond their control. The Equal Employment for All Act which would bar employers from using credit checks as part of pre-employment screening, unless it is necessary and relevant to the employment position. Currently, most state laws allow employers (with the applicant’s permission) to pull a candidate’s credit history and refuse to hire or deny a promotion based on the credit checks.

If you are one of the nation’s 14.5 million unemployed consumers and you are turning to your credit card for life support, a future employer may judge your ever-expanding credit as too great of a risk to hire. With the average job hunt lasting anywhere from six to twelve months, you need to be prepared when any job becomes available. Work to keep your financial resume intact by using a credit card regularly, responsibly, and always paying on-time, develop a repayment plan for any significant outstanding debts, and check your credit report for errors at AnnualCreditReport.com.

Like your resume and references, a credit check needs to be buttoned up before you walk in for that first interview. Don’t let bad credit stand in the way of your next job. For the time being, managing your credit may be the fine line between a new job and the unemployment line.

What started as an innovative automaker’s marketing ploy, which helped move inventory by offering purchase protection plans for jobless customers, is now becoming a standard level of consumer support across many different markets. Companies are coming up with more creative solutions—rebates, penalty-free refunds, special offers should you become unemployed—to get consumers back into stores and opening their wallets again.

Hyundai kicked off the recession trend of buyer incentives with its Assurance plan launched in January, which gives customers who are laid off within a year of purchasing a new Hyundai the option of returning the car and being absolved of the remaining payments (up to $7,500).

And where one good offer goes, many were sure to follow:

AutoNation, the largest U.S auto dealership chain, pledged to cover car payments of the recently unemployed for 6 months through its Protection Payment program; Ford’s Advantage Plan covered monthly car payments of $700 for a year for customers who bought a vehicle between March 1 and June 1 and lost their job by the end of 2009; GM’s Total Confidence program covered payments of $500 for up to 9 months for customers who purchased between April 1 and June 1 and lose their job within 21 months of purchase.

With unemployment creeping to near 10% nationally, job-loss protection offers are a smart strategy to give nervous consumers a sense of security to spend money while also easing consumers’ fear of possible unemployment. The idea to provide offers based on possible future job loss spread quickly from carmakers to financial service companies to airlines and even to drug companies.

Nowadays, a little peace of mind has become a way of business.

• Need that new dishwasher or stove but concerned about losing your job? Sears’ Buyer Protection Plan gives consumers a safety net in these troubled times. Use your Sears card to purchase a major home appliance totaling $399 or more and you are protected if you are involuntarily laid off. If consumers lose their job after 60 days and up to one year from the date of purchase, 1/12 of the entire purchase price is credited to your account each month until it is paid off or you are employed again. The Buyer Protection Plan is in a nationwide testing period from July 6 to August 1, 2009.

• Want to get the high rates of a CD but concerned about the penalties that could come with locking up your money in a CD? Discover Bank aims to help you earn more while worrying less. Their new Penalty Free 12-month CD earns consumers 2.00% APY, and if customers loses their job, they can withdraw their savings principal plus interest without any penalties or fees.

• JetBlue wants you to plan your vacation free from the worries of your employment status. If you are involuntarily laid off, The JetBlue Promise Program will fully refund your fare as long as your travel plans are prior to December 31, 2009, you are over 18, and you paid for the itinerary. JetBlue also offers a Getaways Vacation Package Refund as part of the Promises Program. The Promise Program was originally slated to end in June, but has been extended through 2009.

• Don’t let unemployment stop you from staying healthy. Pfizer’s MAINTAIN (Medicines Assistance for Those who Are in Need) program is a free medicine program for the newly unemployed. Pfizer‘s MAINTAIN program gives away 70+ types of prescription drugs for up to a year or until you become re-insured. To be eligible, you must be taking a prescribed Pfizer medication for 3 months prior to becoming unemployed; enrollment is open through December 2009.

• K-Mart is running the Smart Assist Savings card pilot program, in which unemployed customers can save 20% on all Kmart private label goods for 6 months. This discount program is being run first in Michigan, where unemployment is at the national high of over 14%.

In these rough times, it’s great to see companies reach out to meet consumers half way on the risk scale of unemployment. Not only are companies going to drive additional sales by providing consumers the confidence to shop, but there’s a significant amount of good karma these companies are building with both unemployed and employed consumers alike.