The newest FICO scoring model will now reward consumers that pay their collection accounts with a higher score. But while it may take time to be implemented; consumers with poor credit should get a head start by beginning the process of paying off their collection accounts, if for no other reason that it is one of the fundamentals of good credit.

According to the latest report from The Conference Board, the economy remains in neutral. And although short term expectations dropped from July, longer term income expectations rose 2.7 percent.

Car buyers with damaged credit don't always understand that getting turned down for an auto loan can sometimes be the result of incorrect information in their credit reports.

Before applying for any kind of loan, it's important that you know the information contained in your credit reports is accurate as well as at least one of your credit scores.

To understand your credit situation, you need to order your credit reports as well as your credit scores. To order all three of your credit reports at no charge (1 each per year), go to www.annualcreditreport.com. To see your credit scores, you'll need to pay for and then order one from each of the three bureaus.

The latest program from both Hyundai and Kia is certainly a step in the right direction by offering free, updated FICO scores to borrowers. Unfortunately for most credit-challenged car buyers, not only is its focus too narrow, what's left unsaid is the minimum credit score or profile required to qualify for it.

we still believe consumers with bad credit should be aware of what can happen if they are contemplating going the private seller route for their next vehicle once they have reestablished their credit.

In addition to a bad credit car loan there are other ways in which you can begin to rebuild your credit and raise your credit score.

In order to regain or establish your auto credit you may need to work with one of the subprime auto lenders that offer approved auto loans to credit-challenged individuals.

In a move that will undoubtedly help those consumers with bad credit searching for online car loans, last November Carfax announced that it has taken the additional step of helping to identify vehicles that were previously registered in areas known to have been affected by flooding.