The financial markets are in turmoil. The credit market is as dry as the desert. Small businesses and consumers have the biggest problems in getting financing of any kind. As an example – a year ago a credit score of 680 qualified you for a mortgage that required a 5% down payment. Today the same credit score requires a 15% down payment to get the mortgage. How about credit cards? The number of credit card offers mailed out has dropped by 17%. You might have noticed that you receive less offers in the mail maybe – well, that explains that. Lenders are more carefull of who they offer one of their credit cards.

Car loans are difficult to get now, too. Consider leasing a car – forget it. Chrysler has completely stopped leasing at all. You better bring some cash for a down payment. And if you want 0% interest financing you better boost a credit score north of 700 points. If a credit score of 620 points got you a car loan a year ago, today you will walk off the dealership lot unless you are willing to pay higher interest rates.

Let’s face it – the credit crisis will hit you somewhere – sooner or later. Better prepare by knowing your options. I recommend constant credit report monitoring and review of your credit scores from all 3 credit bureaus. That is the only way today to avoid a declined credit application shaving off valuable points from your credit score.