It looks like First Premier Bank of South Dakota has agreed to refund $4.5 million dollar to New York consumers based on illegal and deceptive marketing tactics.

Although a settlement of 4.5 million sounds huge, after every one takes their cut and it get distributed through out the group...the actual settlement could amount to peanuts.

Also, after the creditor pays the settlement, the individuals that were victims of this kind of scam will continue to pay for 7-10 years with their credit score.

Since everything we do today is unfairly linked to the credit score, it will cost these victims more than they think. In case you didn't know, when your credit score goes down it is a way for the credit bureaus to advertising to the world that you are not creditworthy and you are a risk to do business with.

Creditors have the right to pull your credit regularly to make sure you are still in good standing. So, if you are late or having trouble paying one creditor (say first premier bank), your credit privileges can actually be revoked by other creditors (Sears, Macys, Shell, Discover etc.).

As if that's not enough...when your auto and / or home insurance become due...that could cost more too. All Insurance companies base your insurance premiums on your credit score. So, if you have a low credit score, you will pay higher insurance premiums.

Lets not even talk about if you are in the military, work for a bank, your job requires you to have a security clearance, applying for a new job, trying to relocate, or want to adopt a baby...

The downfall of the residential mortgage industry is having a significant effect on the credit industry. Because of so many bad loans Wall Street is not interested in investing in mortgages.

As a result, we are seeing a tremendous amount of banks going belly up. As of since the fist of the year 129 banks have gone out of business. You can get a list from MortgageImplode.

Keep an eye on your mortgage lender and if they are in trouble, try buying your mortgage back from them at a discount. If you can raise the funds to pull this off, you will have saved yourself a lot of money in mortgage interest over time.

Credit is not the most exciting topic; however, you must guard it with your life. Especially, since the credit score is so unfairly attached to necessary and mandatory resources.

My advice is to keep an eye on your credit. Check it often. If you discover problems try to fix them. Credit repair is not difficult.

As soon as your score begins to rise...don't forget to call your auto insurance and ask them to recalculate your premium...you will be pleasantly surprised.

Everyone is entitled to receive one credit report a year, from the three different credit bureaus, at no cost. So, go online AnnualCreditReport and check your credit. If you decide to include your credit score, the company is allowed to charge a fee for the credit score.