A lot of people make financial mistakes that they wish they never committed. However, making unwise decision is a fact of life and individuals need to deal with the consequences of their action. Financial mistakes are usually reflected in a person’s credit history. It will enable them to take loans from banks and other institutions at a reasonable price.

Financial know-how should start when a person is quite young. The problem is, young people usually don’t know what their getting into when it comes to spending. That’s the reason why there is a recently passed policy that stops credit card companies from issuing cards to individuals below 21 years of age or until they can show proof of income. Young people with co-signers who can vouch for them can also apply for a credit card. In this week’s weekly round-up, we compiled a list of blogs that talks about the new regulation, provides tips on how to start your credit history right, and how to fix the financial mess you got yourself into:

Mary @ Mint Life updated readers about what’s happening in the credit scoring industry in the blog post “Reading, Writing, and…Credit Scoring?” The article is focused on helping kids develop their financial sensibilities to make better choices in the future. Aspects of money management for kids such as opening a savings account are discussed. In addition, kids today face more challenges because of the financial crisis so their credit score is more important than ever.

Ryan @ The Better Credit Blog wrote an article titled “10 Ways to Get the Upper Hand When Dealing with a Debt Collector”. It is a fact that most people experience being at the end of the phone line when a debt collector is calling. This situation is difficult for most people and this article talks about the issues people need to deal with. For one, collectors are trained to play with your feelings and emotions. Look at the call at this light to get an upper hand.

Finally, Ilyce from Think Glink posted the article “Credit Reporting Agencies and Your Debts”. It basically sums up how credit reporting agencies come up with your credit score. It is written in a Q&A format and provides some relevant information for readers.

It has been stressed many times over by the Federal Trade Commission (FTC) and many consumer-advocacy organizations: credit reports should be, and is, free. Despite their efforts though, there are still a number of unscrupulous companies that want to seek to abuse consumers. These firms also divert consumers away from a government-backed site where they can get easy access to their free online credit report.

Even one of the credit bureau, Experian, has gotten the ire of FTC because of their Freecreditreport.com. The site has been under the FTC’s watch for some time now because they mislead people into believing they need to pay a certain fee to get their credit report. Additionally, another one of their tactic is to use the report as bait so that people will sign up to the $14.95 a month service that alerts members to changes in their status.

The government itself has not taken an active stance in discrediting the service, which is fast becoming a $1 billion niche. Currently, the biggest player in this niche is Experian. The company’s market share is over twice that of its three competitors. Experian spent $54 million on television advertising to attract the attention of this market.

The main issue with credit monitoring services is that most don’t actually need it. Most people who have signed up often do so unwittingly. Basically, all a credit monitoring service will do is provide consumers with updates about their credit files. While the service can be beneficial for identity theft victims, it is only a waste of money for the vast majority. Most individuals don’t modify their accounts drastically, and when they decide to, they are typically aware of what it will do to their credit rating. If any errors occur on the report, checking it and reporting to the appropriate credit bureau is often enough.  The greatest use for these monitoring services that I found was when I was taking actions to improve my credit score.  I was able to monitor my progress and see how my actions directly impacted my score.

Warren Buffet’s move to buy a railroad company has garnered a lot of attention. His purchase is not only seen as an investment, it is also widely viewed by others as a sign that the recession has bottomed out. As many know, Warren Buffet is known by many as one of the greatest investors today. His firm, Berkshire Hathaway has a significant amount of “cash hoard” from his previous initiatives.

How Much Did Warren Buffet Buy the Company For?

The firm will be buying the Burlington Northern Santa Fe Corp. at $44 billion ($100 per share). During the last year, the stock price of Burlington has dragged the performance of the Dow Jones Transportation Average. Financial analysts believe that Buffet has paid 18.2 times Burlington’s estimated earning for 2010. The move is not characteristic of the revered investor especially with his past history of not paying a premium when investing new capital. As a result, many think that the explanation behind this is that the man sees hidden potential in the company.

Contrary to Market Trends

Transportation is an ailing industry. As of the November 2 market close, its stocks were dragging behind the entire stock market in the United States at a margin of 15.94 percent. In addition, the number of passengers that the rail services are depressed, a key indicator of an economic downturn.

The Association of American Railroads announced that for the week ending Oct. 10, there was weak demand for goods all over the United States. On the West Coast, it was down 15.4 percent and on the East; it was down by a staggering 19.7 percent.

Given all this, Warren Buffet’s decision to invest in the railway industry come a surprise to everyone. However, even if it proves to be a good move in Buffet’s part, it isn’t necessarily an indication of an economic recovery.

Foreclosure is an intimate concern among families. It affects their lifestyle, standard of living, and their future. It is no wonder that when people hear about foreclosure stories, they cannot help but emphasize with the evicted homeowners. There are even cases when viewers are outraged in the circumstances surrounding the eviction. Whatever the case, it is clear that foreclosure has become a big problem in American society.

In addition, aside from being a personal problem, foreclosure is also a social problem. For instance, areas that have a high foreclosure rate tend to experience a more drastic decline in home prices compared to other areas. Unoccupied homes also become a target among the homeless seeking some shelter. It destroys communities as well as the relationship among neighbors as people put their guards up. Some interesting news, stories, and developments about foreclosure are below:

Bill Shrink Guy @ Shrinkage is Good uploaded a compilation of disturbing news in his post, “10 Outrageous Foreclosure Stories.” Among the stories he compiled include one about a home that was foreclosed about the couple was scammed by Bernie Madoff. The house was turned into a party pad by a Wells-Fargo executive. There was also a story about how one woman committed suicide while another poisoned the kids.

Katie Lopez @ Valley Central posted an article titled “McAllen Seeing Increase in Foreclosures”. The revelations outlined in the article are not at all surprising. With the economic crisis still not completely resolved, more people are losing their homes. It also featured several stories about real homeowners who faced foreclosure.

If you are looking for some inspiring stories, then the blog Man vs. Debt might be the right one for you now. Adam posted an article, “How I Paid Off $15,000 in 9 Months by Selling My Stuff on Ebay”. Although the article is not exactly related to foreclosure, it might as well be. After all, the amount he raised is enough to pay off the mortgage and head off foreclosure for many households.