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Each financial action a consumer takes may affect their credit score, causing it to constantly change.  The economic downturn has put Americans’ credit scores in the limelight, especially as more homeowners struggle to stave off foreclosure by refinancing or modifying their mortgage loans. Although a large majority of Americans are working to improve their scores, it’s important to understand how credit scoring works – and the factors that cause consumer scores to constantly undergo changes.  As this video shows, the numbers that lenders are looking at are also changing.


1. According to the video, what use to be a good credit score?  Do you know your credit score?  How do you stack up, based on the video?
2.  What is the “new” good credit score? Why did it change?  Do you think it is warranted?  Why or why not?
3.  Based on the example they gave in the video, what would a person pay in total dollars for a $150,000 house on a 30 year mortgage if they had a 720 credit score?  How much total interest would they pay over the lifetime of the mortgage?


CreditCom Staff. (2010). Why are Consumer Credit Scores Constantly Changing? Credit.Com, October 25. (Retrievable online at

CNN Video. (2010). New Magic Number, CNN, October 23. (Retrievable online at