Elizabeth Razzi's Local Address: A 10-Point Credit Checkup

When I buy something in a department store, they always offer me 10 percent off the purchase if I open a new credit card account. I want the savings. Should I do it?

No. Open a line of credit only when you really need it. Even then you're better off taking out a Visa, MasterCard or American Express, which are not limited to purchases made from a single retailer. Remember, just one late fee on a store credit card could wipe out the 10 percent savings you got when you opened the account.

Can I still get a mortgage?

Yes, if you can prove that you have income and cash for a down payment. Glenn Kelman, president of Redfin.com, an online real estate brokerage, said buyers have been able to get financing this year, mostly with FHA mortgages.

However, fewer borrowers will be eligible in 2009 for these low-down-payment loans insured by the Federal Housing Administration. This year, FHA eligibility was stretched to cover mortgage amounts as high as $729,750 in expensive housing markets such as the Washington area. In January, that loan limit is set to shrink to $625,500.

Will a job loss hurt my credit score?

Not by itself. Credit bureaus don't have any way of knowing that you've lost your job. But your borrowing behavior may tip them off. They are watching for a sudden increase in your borrowing or a new habit of missing payments, either of which can signal that you're jobless. Don't be surprised if they react by lowering your credit lines and increasing the interest rate on your credit cards. The interest rate on a home-equity line of credit will adjust as market rates change, but not because of changes in your credit scores.

If I lose my job, will they take away my home-equity line of credit?

Again, they won't know unless your borrowing habits tell them. If your credit card borrowing shoots up, the bank may shrink your line of credit, assuming you haven't already tapped the full amount available to you.

How often should I use a credit card so it doesn't become an inactive account?

Make a habit of using each card once every six months, and pay the bill before the grace period expires and you start to owe interest. That way you will continue to feed positive information about your responsible credit habits to the credit bureaus, which will help preserve your credit scores.

How much equity do I need to qualify for a home-equity line of credit?

More than you used to. Joe Belew, president of the Arlington-based Consumer Bankers Association, said you should expect to qualify only if, when the home-equity line of credit is added to your first mortgage balance, the total hits no more than 80 to 85 percent of the home's current value.

E-mail Elizabeth Razzi at razzie@washpost.com.