Answer: Plenty of lenders don’t report to credit bureaus. Even some credit unions, which are normally consumer-friendly, opt to report to only one credit bureau.

If you’re trying to rehabilitate battered credit scores, you want accounts to be reported to all three bureaus so that all three of your FICO credit scores (one from each bureau) can benefit. It doesn’t do your scores any good if a loan you’re paying on time isn’t reported to any bureau, and it does you only limited good if it’s reported to just one bureau because your other two scores won’t benefit.

You typically can find out simply by asking before you apply for a loan whether the creditor reports to all three bureaus.

The fastest way to improve your scores is to have both installment and revolving accounts. Revolving accounts include credit cards, but you don’t necessarily need to borrow money to improve your scores. Using a credit card and paying it in full each month also can help. If you don’t have a card, consider applying for a secured version, which gives you a credit limit equal to an amount you deposit with the issuing bank. But again, make sure the issuer reports the account to all three bureaus before you apply. You can find secured-card offers at LowCards.com, CardRatings.com, CreditCards.com and other sites.

What part of "no" don't you understand?

Someone has asked you to co-sign a loan or lend something of value (money, your car). You know you don’t want to say yes, but you’re unsure of how to say no and still preserve the relationship.

Here are some scripts that may help. They make your position clear in a nonjudgmental way that makes it hard for the other person to continue arguing his or her case. (Well, they can keep trying, but your position is reasonable and clear, plus the facts you’re stating are irrefutable. You just need to keep repeating your stand if they press the issue.)

One caveat: There are no guarantees in life. The world is full of sociopaths who care only about themselves and what they can get out of you. If you thwart them, they may well end the relationship. And you know what? You’ll be better off.

Script #1: You’re asked, “Would you co-sign this loan/lease?”

The situation: Someone with good credit wouldn’t need a cosigner. So this is someone who is either an unproven credit risk (she has no credit history) or, more likely, someone who has already proved to be irresponsible with credit. Either way, she’s asking you to put your credit scores and perhaps your whole financial situation at risk for her. That’s really too much to ask.

Your response: “I really can’t do that. I would be equally responsible for the debt, and one missed payment would trash my credit scores, which I’ve worked really hard to maintain.”

Script #2: You’re asked, “Could you lend me some money?”

The situation: Again, someone with good credit and a reliable income should be able to borrow money at reasonable rates from other sources. The fact he’s turning to you indicates there are problems, and that any loan you make is likely to turn into an inadvertent gift. If you want to go ahead with the loan, make sure you put in writing the interest rate you’re charging, when payments are expected and what the penalties are for missed payments. Such an agreement, when signed by both parties, will help you claim the loan as a bad debt on your taxes when the other party fails to pay (see your tax pro for details). If you’d prefer to skip all that, however, consider saying the following.

Your response: “That’s not something we can do. We’ve watched money issues destroy friendships, and we really wouldn’t want that to happen with you. Is there some other way we can help?”

Script #3: You’re asked, “Could you loan me your car/truck/RV/boat/airplane?”

The situation: Obviously, one big risk is that a borrower will misuse or wreck your vehicle, which can be expensive. No matter how costly the repairs, though, the bigger risk from lending it is the liability you incur. If the borrower causes an accident that kills or seriously injures someone else, you could face lawsuits for millions of dollars. You could, quite literally, lose everything you have.

Your response: “We’ve decided we can’t loan out our vehicles because of the liability issues. Our insurance agent has warned us that we can get sued if anything happens while someone else borrows our vehicle. We know you would be careful, but we just can’t take that risk.”

Answer: In the history of business, there are many examples of companies that were saved from extinction by a loan from a friend or family member and that went on to great success. These stories get attention because they’re exceptions to the rule. Many, if not most, such loans never get repaid because the business couldn’t be saved and the proprietor refused to acknowledge reality.

If her business is viable, she may be able to get a loan from a local bank, although getting approved is still a challenge in these tight-credit times. If you are really her only hope, then you’ll have to decide whether you can afford to give her money you may never get back. If not, then you must decline. If so, you should write up a formal loan agreement, including interest rate, payment terms and penalties for non-payment, and have her sign it before you hand over the cash. Such an agreement may increase the chances of getting at least some money back, and can help you later if you need to take a bad-loan deduction on your income taxes.

Answer: How nice of your husband’s family to decide how you should spend your money. But just because you appear to be better off than they are does not mean you are obligated to support the family spendthrift.

The situation might be different if your brother-in-law’s life or health were at stake, or if he suffered an unexpected financial blow. In that case, you might want to honor your spouse’s sense of obligation (while perhaps persuading the other siblings to chip in).

In reality, however, what we have is a grown man who can’t figure out how to pay an $11,000 bill without pleading with his siblings for a bailout.

Your spouse should recommend he talk to a legitimate credit counselor about a debt management program that could lower his interest rates. He can get a referral from the National Foundation for Credit Counseling at www.nfcc.org.

If you do lend the money, you of course should formalize it with a written agreement and collateral. But understand that regardless of the precautions you take, the chances of his actually repaying the loan are slim.

You also shouldn’t imagine that the shame of the unpaid debt will deter him from asking for more money the next time he gets into trouble. This man never learned self-reliance, and you won’t teach it to him by giving him more money.

Today I’ll be at the World Money Show in Orlando, Fla., to talk about how to boost your credit score to the all-important 740 level. Saturday, I’ll explain how to nail down the best rate on any loan. I’ll also be joining other financial experts to offer strategies on riding out the recession and meltdown on Wall Street. Can’t join me in Florida? Then CLICK HERE for my column at MSN Money for tips to improve your credit score. Also CLICK HERE to see my answers to some commonly-asked questions about credit reports and scores.

Answer: The short answer is no. Negative amortization by itself won’t damage your credit scores, even if your balance goes above the original balance shown on your credit reports.

If the increase in the amount owed “is permitted by the way the loan was structured and the borrower is meeting all her loan payment obligations, then the FICO score won’t be affected by the higher balance,” said Craig Watts, spokesman for Fair Isaac Corp., which created the FICO score, the leading consumer credit gauge.

If, however, your balance is rising because you’ve missed payments and you’re accumulating overdue interest and penalties, then your FICO score almost certainly will drop, Watts said.

Clearly, the FICO scoring system treats installment loans like mortgages quite differently from revolving accounts such as credit cards. If your credit card balance rises higher than your credit limit (or even comes close), your FICO scores will indeed suffer.