Okay, so now we have the big picture in order.

Globally, credit has become a huge economic issue. The stock market seems to be adjusting to the situation but the ripple effect from the subprime crisis is seeping into areas that few economists thought possible even as short as a year ago.

I'd like to spend the next few blogs figuring out ways we can all cope with the new credit and debt environment. If you're in a bad mortgage, looking to buy a new house - - or even a new car -- you've got to know the new rules of the credit lending road -- and how to navigate them

Let's start by examining credit scores. Knowing your credit score is the first step in ensuring you can get the money you need to buy a home, or pay for college, or buy a new car.

After all, whether you're looking to buy your first home, purchase a brand new car, or finance your child's college tuition, there's bound to come a time when you need to ask for a loan. And as you probably know, not all loans are created equal. The specific terms and APR of your mortgage can make the difference between paying $200 or $600 dollars each month in interest - which could potentially add years and tens of thousands of dollars to your overall payment plan. If you could do something to influence those terms, wouldn't you want to? Yet it's amazing how many people don't take the first step towards finding out how: which is knowing your own credit score.

Here's the deal. A credit score, also known as a FICO score, is a number that creditors (banks, mortgage brokers, credit card companies) use to determine whether you're a good credit risk.

Based on past economic behavior, they calculate how likely you are to make payments on time and in full. Generally speaking, a score of 620 to 650 is considered fair - good enough to potentially qualify you for most loans, though the bank or lender may require additional information as back-up. Scores in the high 600s to low 700s are a good, solid bet, and anything higher up in the 700s is golden. Below 620 you may be in trouble - classified as a high risk loan, which means that if you're lucky enough to be offered a loan, you'll want to think hard before taking it, because the interest rates are likely to be brutally high. The key to all of this is knowing the score that you have - and how to make it even better.

Here are some steps to do just that:

#1 -- Request your credit report. It's quick and easy - and free - and can be accomplished in just a few clicks online at annualcreditreport.com; by calling 1-877-322-8228,; or by completing the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. I've just started using FreeCreditReport.com and, although it's only been a few weeks, I'm happy with it. They email me all activity related to my score so there are no surprises. I like that -- even at $12.95 per month.

When you order your credit report from the big agencies, you'll need to provide your name, address, Social Security number, and date of birth. To verify your identity, you may need to provide some information that only you would know, like the amount of your monthly mortgage payment. You'll see that there are three major consumer reporting agencies - Equifax, Experian and TransUnion - and in the interest of thoroughness, you can obtain a report from each one.

#2 -- Check everything in the report carefully: it's entirely possible , and not all that uncommon, for banks and credit companies to make a mistake. If you spot any accounts that you don't recognize, dates that don't seem to match up, and especially if you see any mention of late payments or penalties, make certain they have been recorded correctly - and don't be afraid to call the company in question for details. Far better to spend a few minutes on the phone clearing something up, than leave a mistake on the report that could adversely affect your credit record. If you're an otherwise reliable customer with one or two late payments in your history, you may ask the lender to remove that from your record, as a goodwill gesture. (Though you should note that closing an account on which you've made late payments in the past does not remove that account from your records ... all the more reason to be careful from now on!).

#3 -- If worse comes to worst, and your credit score truly falls on the low side, bear in mind that time is on your side. Potential lenders are nothing if not thorough and detail-oriented, so they'll want to find out exactly how late was that late payment (90 days behind is more damaging from their point of view than just 30), and more importantly, how long ago? None of us can change the past, but we can control our behavior today - which is why it's essential to make at least the minimum payment on all of your current debts or credit card accounts on time, every month. The sooner you commit to doing this, and the more consistently you do it, the better your credit score will be.

Knowing where you stand means everything - in this case the power to make financial decisions with the confidence that you can back them up, with loans or other forms of credit when the need arises. If you're unsure about your current credit score, by all means find out.

In the meantime, do everything you can to raise it, and keep it up high.