As record numbers of Americans suffer from identity fraud while banks and merchants are getting hacked, the credit-card industry is providing a new security system for the cardholder. Retailers, banks and card companies are moving from magnetic strips on credit and debit cards to a chip and PIN card system, which is used in Europe.

Well, the notion of credit for a job well done extends beyond your personal, academic, or professional achievements and into your financial life. In the financial sense, credit is an agreement between a lender, a bank, credit union, credit card issuer, utility company, or other institution that has a financial stake—and a borrower.

You’ve been laid off from your job. The ensuing drop in your income could hurt your FICO score.

FHA has a two-tier credit score system for insuring loans. First-tier loans require a minimum down payment of 3.5 percent, while second-tier loans require at least 10 percent. The first tier includes those with FICO scores of 580 or above, while the second tier includes those between 500 and 579. FHA does not insure loans with anything below a 500 credit score.

Your credit score can make a huge difference in your finances, from helping you qualify for loans and low interest rates to accessing utility services and renting the home you want. As much as people want to have good credit scores, there’s a lot of confusion about how they work.