I understand that more insurers are using credit scores to make underwriting and rating decisions. How would you suggest dealing with the negative impact on my credit report caused when prospective insurers look at my credit before providing me with a premium quote?

You don't need to deal with the negative effect because there probably isn't any.

Credit scores are three-digit numbers used to evaluate your creditworthiness. The leading scoring formula, known as FICO, ignores inquiries by all insurers, says Craig Watts, spokesman for FICO creator Fair Isaac.

The same is true of Fair Isaac's insurance risk scores, which are used by hundreds of insurers in lieu of or in addition to credit scores.

This issue confuses some people because the insurers' inquiries show up on their credit reports, which are maintained by the credit bureaus and are used to compile FICO scores.

But unlike "hard" inquiries - those made by lenders when you apply for credit - inquiries made by insurers, and by you when you want to see your credit history, don't hurt your FICO score.

FICO isn't the only credit-scoring formula out there, and others might not distinguish among the types of inquiries listed on a report.

But, because the FICO score is by far the most commonly used, you probably don't need to worry about insurance inquiries hurting your ability to get credit.

My husband and I just received a small inheritance. We're unfamiliar with investments and don't know which way to turn. Can you give us any guidance?

Usually, the best use for a windfall of any kind is to pay off debt, particularly nondeductible consumer debt such as credit cards and car loans. Once your debt is retired, the next best course is to make sure you have an adequate emergency fund. Three to six months' worth of expenses is usually good.

If you still have money left over, you need to make a few decisions. What's the purpose of this money? Many people focus on how they got it - "It was an inheritance," "I won the lottery!" - which is pretty much irrelevant when it comes to financial planning. What counts is what you want to do with it.

If you plan to use the cash in a few years for a down payment on a house, say, or a great vacation, you'll want to keep the money safe and liquid. Good choices would be a money market account or certificates of deposit with varying maturity dates (with the oldest coming due before you'll need the money).

If you want this money for your retirement 30 years from now, then you can afford to take more risk. You might want to invest it in a diversified portfolio of stocks, bonds and cash.

If you have no clue what you want to do, then stick it in a money market account or savings account until you make up your mind.

Meanwhile, pick up a good book on investing such as Eric Tyson's Investing for Dummies and educate yourselves so that you'll have a better idea of the course you should take.

Liz Pulliam Weston is a columnist for the Los Angeles Times, a Tribune Publishing newspaper.