We all know that the housing market has had a domino affect on everyone in one way or another.  I have not heard analysis talk about how this is affecting our credit scores.  How do one get back on their feet with their credit scores taking a nose dive like the housing market.  Will the housing market, etc lower their scores in-order for people to qualify.

Let me know   

Bettina

Credit scores in general are not tied in with housing markets. YOUR credit score reflects YOUR specific situation and YOUR financial behavior.

If you personally were able to use credit responsibly and pay off your debt(s) on schedule BEFORE the housing mess, and you still can do so now, then your credit score shouldn't change much.

Bettina,  You are correct in your assumption that the current housing market conditions will adversely affect credit scores.  With the record number of home foreclosures, car reposessions and student loan defaults, personal credit scores are affected greatly.  These people will generally not be able to purchase another home for at least 3 years with a home foreclosure.  Banks are not lowering the credit scores they will accept for home loans either.  Actually the opposite is happening.  Most banks are cutting back on they money they will use to fund home loans.  This is mostly because  mortgages are becoming increasingly difficult to sell in the secondary market, and because with the continued loss of jobs & income and the rising cost of gas and energy more and more people will be unable to make their house payments in the coming year. 

Any defaults will affect our credit scores.  We will see more adult children move back in with their parents.  I am luckier than some because we paid our house off in ten years. Not having a mortgage helps a lot. But not all have been this fortunate. I grew up really poor. Neither of my parents finished high school. They came from poor, large farm families. I know the power of money. I save and live below my means. I drive a car that gets 40 miles per gallon. I buy clothes only on sale as a rule.  Love thrift shops for non essential items. I'll pick up a couple of investment properties in forclosure. I recall my mom crying when I was a little child because she could not pay the bills. The day a man came and took my mama's sewing machine for non-payment is one that I will never forget. Mama did not say a word, but her face said it all. I did not know at that time what a repo man was, but I knew that he would never visit me. And he has not. And I do many charatible projects. God expect us to give back to our community. And it feels good to do for others (especially children).

I don't know how you can make these assertions about what will and won't affect credit scores when NOBODY knows how their calculated. Can you imagine that there is this number that almost controls your life and they won't tell you how they arrive at it? Seems like a completely screwed up system to me, and designed ONLY to benefit the lenders and banks by giving them an excuse to collect more money. What does it do for us?

How do one get back on their feet with their credit scores taking a nose dive like the housing market.

========

One wonderful way to help out during these times (or any time) is to reduce your dependence on debt/credit.  Get in the habit of using cash.  It may seem outdated but our grandparents actually "saved up" for things.  When you use cash for purchases, you pay less in the long run & you don't get caught when you can't make payments.

My wife and I paid cash for our last two cars.  We no longer have any debt aside from our 1st & 2nd mortgage.  We have tripled the payment on our 2nd mortgage & will have it paid off next year.  There is so much more freedom when you don't have all those payments hanging over your head and knowing that you have several months of savings sitting in an account in case of an emergency.